Richemont: Reinet Distributes 90% Of BAT Stake To Holders

Source from:  11-3-08 news.morningstar.com GENEVA -(Dow Jones) 11/04/2008

Luxury goods maker Compagnie Financiere Richemont S.A. ( CFR.VX) Monday announced further steps tied to the ongoing spin-off of the minority stake in British American Tobacco Plc (BTI). Luxembourg-based Reinet Investments SCA, a fund set up under the spin-off transaction, will distribute 90% of its interest in to its shareholders and holders of Reinet Investments depositary receipts. The distribution is against the cancellation of 86.3% of shareholders' and DR holders' interests in Reinet. Reinet will cancel 495,599,271 shares, or 86.3% of the ordinary shares in issue, and deliver 351,032,964 shares in BAT to shareholders. It is expected that the BAT shares will be credited to holders' accounts by Nov. 4. Richemont Securities AG will consequently also cancel 86.3% of the DRs currently in issue and deliver BAT shares to DR holders. Subject to Remgro Ltd. (REM.JO) exercising a put option granted by Reinet, Reinet will today also issue a further 30,255,541 new shares in exchange for a contribution by Remgro of 21,430,000 BAT shares. Upon receipt of such BAT shares from Remgro, Reinet shall issue these new shares in the form of 302,555, 410 DRs directly to Remgro shareholders. Following the Reinet reduction of capital and the capital increase as a consequence of the Remgro contribution, Reinet will have 108,856,270 ordinary shares outstanding, in addition to the 1,000 management shares in issue, and will hold 60,433,663 BAT shares. In addition to its holding of BAT shares, Reinet also holds some EUR351.1 million in cash and investments valued at some EUR55.1 million. Reinet has no debt and no significant other liabilities. The aggregate net asset value of Reinet at the close of business Monday is expected at around EUR1.72 billion and the net asset value per share at EUR15.76. Company Web Site: http://www.richemont.com -Zurich Bureau, Dow Jones Newswires; +41 43 443 8040; zurichdjnews@ dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=2LpU7c%2BJJg4jXi7sz%2Fp3ug%3D%3D. You can use this link on the day this article is published and the following day. Enditem