Tobacco.org

• Richemont Investors Approve BAT Spinoff, Split in Two (Update1)  

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.''

Jump to full article »