Richemont Restructuring Approved
October 10, 08
Compagnie Financière Richemont SA (CFR) and Richemont SA (RSA) will proceed with the restructuring of their businesses to create a focused luxury goods business and a separately-listed investment vehicle, following shareholders approval.
The restructuring will result in the distribution of 90 percent of Richemont's interest in British American Tobacco plc to its shareholders.
Following the restructuring, CFR will become a focused luxury goods business, holding all of Richemont's luxury assets, headquartered in Geneva and listed on SIX Swiss Exchange. The company expects it to remain in the blue-chip SMI index of leading Swiss stocks.
RSA will be converted into a Luxembourg investment vehicle listed on the Luxembourg Stock Exchange, to be renamed Reinet Investments SCA, which will focus on long term capital growth.
On November 3, 90 percent of Richemont's interest in BAT, about 17.6 percent holding, will be distributed to Reinet shareholders. The remaining 10 percent will be retained in Reinet.