In November 2007, Richemont announced that it was studying plans which might lead to a separation of its luxury goods operations from its other interests, which include its investment in British American Tobacco plc (“BAT”).
Richemont has conducted an extensive review of potential alternatives open to theGroup in anticipation of the elimination of Luxembourg 1929 holding companies at theend of 2010. Richemont SA, the Group's principal holding entity, currently benefitsfrom the 1929 holding company status, as does the joint venture vehicle used byRichemont and Remgro Limited (“Remgro”) to hold the BAT interest. The review has resulted in the development of proposals, which would see Richemontseparated into two entities: a luxury business, headquartered in Switzerland, and aninvestment vehicle, which it is currently proposed should be based in Luxembourg andstructured as an investment fund. In addition to retaining their shares in the luxury goods business, it is envisaged thatRichemont unitholders would receive shares in the investment vehicle and would beable to receive a substantial part of their interest in the BAT shares directly. Subject to receipt of appropriate confirmations from Swiss regulators and SWX SwissExchange (“SWX”), the luxury goods business would continue to be listed on SWX,whilst it is expected that the new investment vehicle would be listed in Luxembourg,subject to the approval of Luxembourg regulators and the Bourse de Luxembourg.Appropriate arrangements would be put in place to allow holders of Richemont SouthAfrican depository receipts (“DRs”) to hold and trade DRs in respect of both the luxurygoods and investment entities, subject to the approval of the JSE Limited, whichoperates the Johannesburg stock exchange. Discussions are in progress with BAT, which has provided a commitment, if sorequested, to apply for a secondary listing of its shares on the Johannesburg stockexchange. This would enable South African residents who currently hold RichemontDRs to hold BAT shares directly.Significant progress has been made to date in developing and refining the proposals.However, restructuring the Group is complex, involving the cooperation of Remgro andBAT, as well as the coordination of a large number of legal, fiscal and regulatoryrequirements and approvals in various jurisdictions. To date, not all of the necessaryapprovals have been obtained and a number of specific conditions must be fulfilledbefore the proposed restructuring can be implemented. The proposed restructuring remains subject inter alia to the necessary conditions andapprovals, which will include approval by the Board of Compagnie FinancièreRichemont SA as well as approval by unitholders in their capacity as shareholders ofCompagnie Financière Richemont SA and participation certificate holders of RichemontSA. There can be no certainty that the proposed restructuring as outlined above or anymodified proposals will be put forward for approval by unitholders or that such arestructuring would actually take place. Further announcements will be made when appropriate. No further comment will bemade until such time.Press release
