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· Richemont
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Jump to full article: The Wall Street Journal Interactive Edition, 2008-08-08
Author: MARTIN GELNAR and ROBB M. STEWART
Intro: Cie. Financiere Richemont SA and Remgro Ltd. said Friday they will spin off their combined 30% stake in British American Tobacco PLC. Both companies are controlled by South Africa's Rupert family.
The moves, aimed at avoiding a change in taxation in Luxembourg that would penalize the investments, will edge Geneva-based Richemont closer to becoming a pure luxury goods company and potentially lessen the discounts at which it and South African investment concern Remgro trade.
In both transactions, shareholders of the companies will be offered a direct holding in BAT. In South Africa, a secondary listing of the tobacco company will allow investors to hold shares without using existing foreign-exchange allowances.
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