Richemont considers splitting off luxury goods
As the result of impending changes in the legal environment in Luxembourg where Richemont SA, a subsidiary of Compagnie Financière Richemont SA and the co-issuer of Richemont units, is based, Switzerland-based luxury goods and tobacco group Compagnie Financière Richemont SA, is considering restructuring its business and splitting its luxury goods operations from its other interests, including its interest in British American Tobacco plc (BAT).
The idea is being mooted due to the fact that under the new laws, which will come into effect at the end of 2010, the special status of ‘1929’ holding companies, of which Richemont SA is one, will be abolished thus possibly allowing unit holders to become direct shareholders in British American Tobacco.
The company, whose brands include Lancel, Alfred Dunhill, Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Panerai and Montblanc, stated that the plans remain subject to further review and there is no certainty that this would lead to a proposal being announced.
