British American Tobacco (BAT) has started a buyback programme, expected to run until the end of 2025.
The programme uses proceeds from BAT’s sale of 436.9 million shares in ITC Ltd. The final net proceeds received by the BAT Group were GBP 1.57bn and the programme will buy back GBP 1.60bn of BAT ordinary shares starting with GBP 700mn in 2024 and with the remaining GBP 900mn in 2025. The programme will commence on 18 March 2024 and will end no later than 31 December 2025, BAT said in a statement.
“The purpose of the Programme is to reduce the issued share capital of the Company. The purchased shares will be cancelled. The Company has entered into an agreement with UBS AG London Branch (“UBS”) to enable the purchase of Ordinary Shares for the initial stage of the Programme. UBS will purchase the Company’s ordinary shares as principal and the Company will purchase such number of ordinary shares from UBS in accordance with the terms of the engagement.”