Richemont Restructuring a Focus on Luxury at the Expense of Tobacco

Compagnie Financière Richemont S.A. announces a restructuring to create a focused luxury goods business and a separately-listed investment vehicle. This includes the distribution of 90 percent of its interest in British American Tobacco p.l.c. (BAT) to its shareholders.

The restructuring is subject to Richemont shareholders approval as well as the approval of Remgro Limited shareholders, Richemont's co-shareholder in R&R Holdings, which holds the combined interest of Richemont and Remgro in BAT.

The company will hold all of the luxury assets, continue to be listed on SWX Swiss Exchange and expects to remain in the blue-chip SMI index of leading Swiss stocks.

Richemont S.A. will be converted into a Luxembourg investment vehicle listed on the Luxembourg Stock Exchange, to be renamed Reinet Investments S.C.A., which will focus on long term capital growth. The BAT shares will be will be distributed to Reinet shareholders.

Richemont said the restructuring addresses the changes to tax legislation in Luxembourg, which would make the current group structure significantly less attractive to Unitholders from 2011 onwards.