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Richemont soars after BAT tobacco spin-off  

Shares in Switzerland's Richemont surged on Tuesday as markets welcomed the group's first trading day as a pure luxury play following the spin off of its stake in British American Tobacco.

Shares in the new Richemont, which is now Europe's second-biggest luxury goods specialist, soared 37 percent to 25.58 Swiss francs when compared with a pro-forma closing price of 18.73 francs.

Richemont reached this closing price through a calculation for its luxury component excluding BAT.

"It is clear that the strategy has been a success," Kepler Capital Markets analyst Jon Cox said.

Ninety percent of the BAT stake will be distributed to shareholders at the beginning of November and the rest will be held in new investment vehicle Reinet Investments.

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