Jump to full article: Bloomberg News, 2008-05-22
Author: Vernon Wessels
Intro: 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.
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