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Cie. Financiere Richemont SA investors backed a plan for the company to spin off its British American Tobacco Plc stake and split in two.
Shareholders voted in favor of the split today at a meeting in Geneva, where Richemont, the world's second-biggest luxury- goods maker, is based. The company, controlled by South Africa's billionaire Rupert family, will separate to create a pure luxury business and an investment unit called Reinet.
The family is spinning off the BAT shares before Luxembourg imposes a tax, and is forming Reinet in anticipation of what Richemont Chairman Johann Rupert has said may be ``once-in-a- lifetime'' investment opportunities in the next five years. The Ruperts built Richemont up over two decades by buying watch and jewelry makers with cash from South African tobacco interests.
``It's funny because for many years, everybody said, `Get rid of tobacco, get rid of tobacco, get rid of tobacco,''' he said today in an interview after the meeting. ``Now that we're getting rid of tobacco, they're saying, `Whoa, whoa, whoa, it provides a stable cash flow.' But they understand it's better for all the shareholders.''
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British American Tobacco (BAT) is set to become South Africa’s biggest listed company, challenging stalwarts like mining giant Anglo American for top spot on the JSE.
At current market prices, BAT, which will have its secondary listing on the JSE, is valued at about R560-billion. Its primary listing will be in London.
The new listing is a result of a massive, complex restructuring of the Rupert family-controlled Swiss luxury goods group Richemont and its local investment group Remgro.
The restructuring will also bring about a massive payout to shareholders — R60-billion in the case of Remgro and just less than R120-billion for those with shares in Richemont .
For the first time in the history of the Rupert family empire, neither Remgro nor Richemont will be invested in tobacco. . . .
While Remgro has got rid of tobacco, Visser is optimistic about the future of BAT.
The tobacco business remains sound and BAT is a good company with a footprint in developed and developing economies, he said. . . .
But not everyone is happy.
Yussuf Saloojee of the National Council Against Smoking said BAT’s listing is “regrettable, not only because of the product it sells but also because of its conduct”.
He said the company sells its products to young people and has broken an advertising ban on a number of occasions.
He encouraged people not to invest in the company as it is not socially responsible.
Cie. Financiere Richemont SA and another company controlled by South Africa's billionaire Rupert family will spin off a 27 percent stake in British American Tobacco Plc to avoid taxes.
BAT fell 2 percent in London trading, cutting the holding's value to 9.96 billion pounds ($19.1 billion). Richemont, which will split into two companies as part of the transaction, rose 3.3 percent in Zurich. Remgro Ltd., which the Ruperts also control, added 4.3 percent in Johannesburg. The spinoff will take place Nov. 3.
Richemont and Remgro are reorganizing the Luxembourg investment company that holds their BAT stakes because the Grand Duchy plans to end holding-company tax breaks from 2010. The spinoff may boost Richemont stock . . .
The spinoff may draw investors to Richemont who avoid tobacco investments on ethical grounds, Alessandro Migliorini, an analyst at Helvea AG, wrote in a note to investors. He has a ``neutral'' rating on the stock. . . .
Richemont and Remgro gained a combined 35 percent stake in BAT on merging cigarette maker Rothmans International with the U.K. company in 1999.
British American Tobacco Plc may trade its shares in Johannesburg once Cie. Financiere Richemont SA and Remgro Ltd. complete a reorganization of their interest in Europe's largest cigarette maker.
Richemont, controlled by South Africa's Rupert family, and Remgro use Luxembourg-based R&R Holdings SA to own nearly a third of BAT. The European Union forced Luxembourg to end tax breaks for holding companies by 2010, prompting the two businesses to reorganize their investment in the London-based maker of Dunhill and Kent.
A review of the investment will result in Richemont splitting into a luxury business based in Switzerland and an investment company based in Luxembourg, Richemont said in a stock exchange statement today. Shareholders would get shares in the investment company and would be able to receive part of Richemont's stake in BAT directly, it added.
Cie. Financiere Richemont SA, the luxury-goods company controlled by South Africa's Rupert family, may spin off its stake in British American Tobacco Plc before increased taxes in Luxembourg hurt the investment.
Richemont shares rose the most since June 2006. The maker of Cartier jewelry and Purdey shotguns may split its luxury business from its stake in BAT, whose brands include Lucky Strikes, according to a statement from the Geneva-based company today.
Richemont and the billionaire Ruperts' Remgro Ltd. use Luxembourg-based R&R Holdings SA to own nearly a third of BAT, worth about 10.8 billion pounds ($22 billion). The European Union forced Luxembourg to end tax breaks for holding companies in 2010, prompting Richemont and R&R to reorganize.
Dr Anton Rupert, undoubtedly South Africa's most successful entrepreneur and one of the greatest businessmen the country has produced, has died.
He was 89 years old.
Family spokesperson Hans Knoetze confirmed on Thursday that he died peacefully in his sleep on Wednesday night. . . .
The Rupert business empire includes Richemont, which sports luxury names Cartier, Mont Blanc, Rothmans and Dunhill, and stakes in Distell, British American Tobacco, FirstRand, Absa, TransHex, Unilever, Nampak, TotalSA, Rainbow Chicken and Medi-Clinic through Remgro.
the hoardings at St Andrews carried only the word Dunhill. Did that not leave open the possibility of some confusion between a company selling pricey lighters and another one selling a product that kills thousands of smokers in this country every year? . . . Having established the typographical and corporate chasm that separates Alfred Dunhill Ltd from the cigarette brand you might think that would be an end to the confusion. But dig a little deeper and it quickly becomes clear the divide is not so clear after all.
Alfred Dunhill Ltd is owned by a Swiss-based company called Richemont, which also owns a range of other luxury goods companies including Cartier and Mont Blanc. . . .
So what took place at St Andrews last week was not a golf tournament sponsored by a cigarette company but one sponsored by a company selling lighters to smokers, which is owned and heavily cross-subsidised by another company which makes most of its profit from tobacco sales. Confused? Maureen Moore, the chief executive of the anti-smoking group ASH Scotland, is not. "No laws have been broken but what you have here is a classic case of brand stretching. It is not against the law, but it is certainly against the spirit of the law, and the European Tour should do itself a favour and end Dunhill's sponsorship of this event as soon as possible."
Richemont sells interest in BAT SA exports to US up 38.2% SA faces white wine shortage Manuel encourages shareholder activism SAA sets aside R100m for severance packages Mbeki's investment council meets today
What does a French tobacco tycoon have in common with Des O'Connor, Esther Rantzen, the former Spice Girl Geri Halliwell, and a millionaire Labour Party donor? Answer: they have all been entertained at taxpayers' expense at Chequers, the Prime Minister's country retreat in Buckinghamshire.
For nearly 90 years the Tudor mansion has provided British leaders with a rural sanctuary where they can discreetly entertain the favoured few away from the watchful eyes of Westminster.
An invitation to dine there is a mark of prime ministerial favour. But until this weekend the identities of guests have been kept secret, only slipping out as unsubstantiated gossip in newspaper diary columns.
But in a ground-breaking 'freedom of information' victory, The Observer has obtained the names of individuals entertained at Chequers since June 2001. . . .
However, the list's most controversial aspect concerns the light it shines on Labour's links with cigarette manufacturers. The Chequers roll-call shows that Blair used taxpayers' money to entertain French millionaire Alain-Dominique Perrin, a key director of the luxury goods firm Richemont. The company - whose brands include Dunhill and Cartier - owns a £3 billion stake in British American Tobacco.
Tony Blair is facing questions from the parliamentary “sleaze” watchdog over his failure to declare a holiday with a leading figure in the tobacco industry, it was disclosed tonight.
Downing Street confirmed that the Parliamentary Commissioner for Standards, Sir Philip Mawer, had written to the Prime Minister about his stay two years ago at the French chateau of Alain Dominique Perrin.
It followed reports in the Sunday Telegraph and the News of the World that Tory MP Chris Grayling had complained to Sir Philip that Mr Blair had not declared the hospitality he received in the Register of Members Interests. . .
At the time, Mr Perrin was chairman of the luxury goods firm Richemont, which, according to the reports, owns a 21% stake worth around £3 billion in British American Tobacco, the world’s second biggest cigarette company”.
A Downing Street spokeswoman said that Mr Blair had not yet replied to Sir Philip’s letter, but would do so in due course.
Anti-smoking pressure group the Tobacco Control Board laid charges in March last year against championship organisers Sunshine Tour, as well as against Houghton Golf Club president Gary Buskin and Dunhill cigarettes manufacturer British American Tobacco. . . .
However, police spokeswoman for Johannesburg , Capt Mashadi Selepe, said the National Directorate of Public Prosecutions would not prosecute "due to insufficient evidence".
British American Tobacco SA says there is no link between the Alfred Dunhill luxury goods, which are behind the golf event, and its Dunhill brand of cigarettes.
Alfred Dunhill is owned by Swiss-based multinational Richemont, two of whose directors are also BAT board members.
A Government inquiry into allegations that Britain's biggest tobacco company may have "deliberately stimulated" smuggling was completed almost a year ago, Whitehall sources said yesterday. MPs and anti-smoking groups have demanded to know whether Tony Blair had intervened to delay publication of the report into British American Tobacco because of his friendship with Alain Dominique Perrin, whose firm is among BAT's biggest shareholders.
As revealed in The Independent on Sunday yesterday, the Prime Minister took a five-day holiday at the billionaire businessman's 15th-century chateau in south-west France last year. M. Perrin heads the luxury goods firm Richemont, which has a substantial stake in BAT.
MPs are to ask whether Mr Blair discussed the inquiry by the Department of Trade and Industry with M. Perrin. The delay of the report into an inquiry opened three years ago has concerned the Commons Select Committee on Health, which might summon BAT executives to give evidence.
Tony Blair faced claims tonight that an inquiry into whether Britains biggest tobacco firm encouraged smuggling had been buried.
The accusation came along with details of the Prime Ministers links to a tycoon with 3 billion invested in British American Tobacco.
MPs and anti-smoking groups demanded to know whether Mr Blair personally intervened in the inquiry into BAT because of his friendship with major shareholder Alain Dominique Perrin.
He took a five-day holiday in south-west France last year at the billionaires 15th-century chateau, The Independent on Sunday said.