Luxury goods giant Compagnie Financiere Richemont said today that it is considering splitting off its luxury goods operations from a 19.3 per cent stake in British American Tobacco (BAT).

The proposed restructuring reflects impending changes in the legal environment in Luxembourg where Richemont SA, the principal subsidiary of Compagnie Financière Richemont SA and the co-issuer of Richemont units, is located. Richemont SA is currently a Luxembourg '1929' holding company; the special status of 1929 holding companies will be abolished at the end of 2010.
Geneva-based Richemont currently has a 19.3 per cent interest in BAT and the restructuring may entail providing Richemont unit holders with the option of becoming direct shareholders in BAT. The plans for this potential restructuring remain subject to further review.
Compagnie Financière Richemont SA and Remgro Limited, both controlled by South Africa's Rupert family, hold a combined interest of 30 per cent of BAT – worth about GBP 10.8 billion (US$ 22.2 billion) – through their jointly held investment vehicle, R&R Holdings SA. (ci)