British American Tobacco urged to follow exodus from London to US

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A top five shareholder in British American Tobacco has called for the cigarette group to move its primary listing to New York.

Rajiv Jain, founder of the $92 billion US-based investment firm GQG Partners, has urged bosses at the FTSE 100-listed owner of Lucky Strike and Dunhill cigarettes to shift its listing from London, which dates back to 1912.

Rae Maile, the veteran tobacco analyst at Panmure Gordon, said: “The evidence of redomiciling a listing to get a better rating is mixed. Amvescap became Invesco and relisted in the US and the rating did nothing. Similarly Henderson on becoming Janus Henderson. Arguably in each case the root cause of the poor rating was not where they were listed but the story that had to tell. The risk for BAT being listed in the same location as Philip Morris International is that its story will look distinctly second rate.”

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Author: Alex Ralph, The Times

Rae Maile

Managing Director, Research Analyst, Financials & Tobacco

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