Reinet Investments SCA agreed to sell its 2% stake in British American Tobacco (BAT) for £1.22 billion ($1.49 billion), exiting its long-running position in the company. Reinet said its offering 43.3 million shares in the London-listed group via JPMorgan Chase & Co. priced at £28.20 per share, marking a 3.9% discount to the prior closing level.
BAT shares fell as much as 2.9% on Tuesday for its sharpest intraday drop since October.
“A plan by BAT long-term shareholder Reinet to sell its 2% holding in a share placing shouldn’t affect the tobacco company’s commitment to delivering a £900 million share buyback in 2025,” wrote Bloomberg Intelligence analyst Duncan Fox.
Luxembourg-based Reinet was formed out of Swiss luxury group Richemont in 2008. The tobacco company stake amounted to about one-fourth of Reinet’s net asset value, according to a report last year. Reinet said it intends to use the proceeds from the sale for its “ongoing investment activity.”
