Business brief | BAT lifts as it flags ITC sale, while Capitec bulks up in Cyprus | Business

In a busy day for news, Lucky Strike owner British American Tobacco lifted as it confirmed it's looking to sell part of India's ITC to fuel share buybacks. Closer to home, Capitec announced it's upping its stake in consumer lending group Avafin, while Old Mutual flagged "exceptional" new business growth.

Tobacco giant British American Tobacco announced it intends to give up about a 3.5% stake in India's ITC, remaining a significant shareholder at about 25.5%, intending to use the proceeds to buy back shares, starting with an initial £700 million (R16.6 million) in 2024. The Rothman's owner had initially signalled it was contemplating such a move. ITC is an Indian conglomerate based in Kolkata and maintains a presence in cigarettes, hotels, paper and packaging, agribusiness and other fast-moving goods. BAT's initial investment in ITC dates back to the early 1900s, and the two companies have a longstanding, mutually beneficial relationship, BAT said. Its shares climbed about 3.5% but have still lost almost 16% in the past year.

The Prudential Authority of the SA Reserve Bank has approved Capitec's increased shareholding in Avafin Holding, an international online consumer lending group, from 40.66% to 97.69% at a purchase price of €26.3 million (R534 million). In 2017, Capitec announced the acquisition of an initial 40% interest in Cream Finance Holding (renamed Avafin), domiciled in Cyprus. The acquisition of a minority interest in Avafin in 2017 provided Capitec with the opportunity to gain experience in the international online consumer credit market, management of operations and risk in foreign markets and international diversification of Capitec's income sources, it said. Avafin is closely aligned to Capitec's client-centric retail business model and well positioned for growth, it added. Capitec was down about 1% on Tuesday but has risen 28% in the past 12 months.