Cartier maker Richemont to revamp and drop BAT stake

By Katie Reid ZURICH (Reuters) - Swiss luxury goods maker Richemont (CFR.VX: ) and South Africa's Remgro (REMJ.J: ) said on Friday they are to spin off their jointly held 30.1 percent stake in British American Tobacco (BATS.L: Richemont, controlled by the Rupert family, will repackage its entire luxury business as a new Swiss-listed company, Compagnie Financiere Richemont (CFR). Meanwhile 90 percent of the Richemont and Remgro BAT stake will be given to shareholders, leaving 3 percent of BAT to be held in a new investment vehicle. Richemont has a 19.4 percent stake in BAT and Remgro 10.7 percent, held through their jointly-owned Luxembourg vehicle R&R Holdings. They said the reorganization has been prompted by Luxembourg tax changes, which will see the introduction of a 15 percent withholding tax being imposed on R&R... [read full story]