London Stock Exchange-listed British American Tobacco Plc has commenced a $2 billion (£1.6 billion) share buyback programme due to be completed in 2025.
The share buyback exercise was commenced after the group netted about £1.57 billion from the sale of its stake in Indian conglomerate, ITC Limited.
According to announced plans, BAT will buyback £700 millions of its shares in 2024, followed by an additional £900 million by the end of 2025.
BAT Plc still holds a 25% share in ITC, which is the leading cigarette manufacturer in India. However, ITC also operates various other businesses, such as food products and packaging.
What you should know
British American Tobacco Nigeria is a subsidiary of BAT Plc, and it holds the dominant position in the Nigerian cigarette market, boasting the largest market share. Among the brands it manufactures and distributes are Benson & Hedges, Rothmans, St. Moritz, Dunhill, Consulate, London Kingsize, Sweet Menthol, Royal Standard, Excel, and Three Rings.
BAT Nigeria which operates factories in Ibadan and Zaria faces competition from Philip Morris Nigeria Limited and International Tobacco Company in Nigeria.
In December 2023, the Federal Competition and Consumer Protection Commission (FCCPC) announced that it had fined BAT Nigeria $110 million stating that the company had violated the FCCPC Act amidst other regulations.
However, the company reported that it had repaid the fine, noting that the information was contained in its Half-Year 2023 Reports.
The External Affairs Director, British American Tobacco West and Central Africa, Mrs. Oddiri Erewa-Meggison noted,
- “The FCCPC had in December 2022, entered into a consent order, terminating the mentioned investigation and associated proceedings. British American Tobacco (Nigeria) Ltd and British American Tobacco Marketing (Nigeria) Ltd have made payments to settle the penalty.”
