Reinet Investments Sells 43.3M British American Tobacco Shares for GBP1.22B

Reinet Investments S.C.A. (Reinet), a Luxembourg-based investment vehicle, has announced the sale of 43.3 million ordinary shares in British American Tobacco p.l.c. (BAT), representing approximately 1.96% of BAT's ordinary share capital. The transaction, executed through an accelerated bookbuild process, generated gross proceeds of approximately GBP1.221 billion for Reinet.

The sale, completed with J.P. Morgan Securities as the sole global coordinator and bookrunner, ensures that Reinet and its subsidiaries no longer hold any interest in BAT. BAT will not receive any proceeds from this sale. The transaction marks Reinet's complete exit from BAT, following the release of 11.1 million shares used as loan collateral and the sale of 5 million BAT shares in late 2024.

Reinet's management has stated that the proceeds from the sale will be used for further investment activities, aligning with the company's long-term strategy of protecting shareholders' capital while pursuing growth opportunities. The sale of BAT shares is a strategic move for Reinet, allowing it to reallocate capital to other promising investment opportunities.



The tobacco industry has been facing regulatory pressures and changing consumer preferences, which may have influenced Reinet's decision to sell its BAT shares. The decline in tobacco revenue by 3% in 2023, as mentioned in the Revenue Analysis section, supports this notion. Additionally, the sale of BAT shares could be part of a broader strategy to realign Reinet's portfolio with its long-term objectives and risk appetite.



Reinet's investment strategy is characterized by a focus on protecting shareholders' capital while pursuing growth opportunities. The sale of BAT shares, along with the proceeds generated, can be reinvested in other promising opportunities that align with Reinet's long-term goals. This transaction underscores Reinet's commitment to a long-term, value-driven approach to investing.

In conclusion, Reinet Investments S.C.A.'s sale of 43.3 million British American Tobacco shares for GBP1.22 billion is a strategic move that allows the company to reallocate capital to other promising investment opportunities. The transaction reflects Reinet's commitment to a long-term, value-driven approach to investing, while also addressing the challenges faced by the tobacco industry.