Richemont May Split Off BAT Stake

Source from:  tobaccojournal.com 19 Nov 2007 11/21/2007

Luxury goods company Compagnie Financiere Richemont said today that it is considering splitting off its luxury goods operations from a 19.3 per cent stake in British American Tobacco (BAT). The proposed restructuring reflects impending changes in the legal environment in Luxembourg where Richemont SA, the principal subsidiary of Compagnie Financière Richemont SA and the co-issuer of Richemont units, is established. Richemont SA is currently a Luxembourg '1929' holding company; the special status of such 1929 holding companies will be abolished at the end of 2010. Geneva-based Richemont currently has a 19.3 per cent interest in BAT and the restructuring may entail providing Richemont unitholders with the option of becoming direct shareholders in BAT. The plans for this possible restructuring remain subject to further review. No further comment will be made until such time, the company said. Compagnie Financière Richemont SA and Remgro Limited, both controlled by South Africa's Rupert family, hold a combined interest of 30 per cent BAT - worth about 10.8 billion pounds (USD 22.2 billion) - through their jointly held investment vehicle, R&R Holdings SA. Enditem