Jump to full article: Business Day (za), 2007-11-20
Author: Nicola Mawson
Intro: SWISS luxury goods maker Richemont said it was considering spinning off its € 9,8bn stake in British American Tobacco (BAT) from its operating interests in a bid to avoid paying more tax in Luxembourg.
South African investment holding company Remgro also said it would consider restructuring to split its tobacco assets from its other interests. It has an indirect 10,6% stake in BAT through a Luxembourg holding group. Its BAT stake accounts for about 53% of its net asset value.
Richemont and Remgro said the restructuring was proposed because of impending changes in the law in Luxembourg. Richemont’s major subsidiary and co-issuer of Richemont units is located in Luxembourg, as is the Remgro subsidiary. The move could see shareholders gaining direct stakes in BAT.
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