| Fri 7 Sep 2007, 13:25 | | RCH - Richemont - Exchange Rate applicable for Div |
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RCH
RCH
RCH - Richemont - Exchange Rate applicable for Dividend payable on Depository
Receipts
Richemont Securities AG
(Incorporated in Switzerland)
Share code: RCH
ISIN: CH0013157380
("Richemont")
EXCHANGE RATE APPLICABLE FOR DIVIDEND PAYABLE ON DEPOSITORY RECEIPTS ("DRs")
The dividend payable to holders of Richemont Securities` DRs resident in the
South African Common Monetary Area (`SACMA`) is derived from the dividend paid
by Richemont SA, Luxembourg and Compagnie Financiere Richemont SA, Switzerland
to holders of Richemont `A` units. The DR dividend payable to SACMA residents is
payable in Rand. The Board of Directors of the two companies have recommended a
total dividend of Euro 1.25 per unit this year, an increase of 14 per cent over
the prior year. This comprises the regular dividend of Euro 0.65 per unit
together with a special dividend of Euro 0.60 per unit. The regular dividend
will be paid jointly by Richemont SA, Luxembourg - which will pay Euro 0.596 per
unit - and Compagnie Financiere Richemont SA ("CFR") - which will pay Euro 0.054
per unit. The dividend payable by CFR will be subject to Swiss withholding tax
of 35 per cent, resulting in a net dividend of Euro 0.0351 per unit. The special
dividend will be payable by Richemont SA, Luxembourg. No withholding tax will be
deductible in respect of the dividends payable by Richemont SA, Luxembourg.
Richemont Securities AG will operate a programme for South African tax
residents, who will generally be eligible to recover 27.5% of the 35%
withholding tax levied. Full details of the programme will be mailed to holders
of DR`s on 28 September 2007, at the time of the payment of the dividend. In the
past certain DR Holders may have lost their opportunity to reclaim the
withholding tax due to incorrect contact information being supplied by their
CSDPs to STRATE. We suggest that DR Holders contact their CSDP in advance of the
payment to ensure the information held in the STRATE system is correct. Should
DR holders not receive details of the withholding tax recovery process by mail
by late October 2007 they should contact their CSDP or Computershare Investor
Services 2004 (Pty) Limited ("Computershare").
As DR`s trade in the ratio of 10 DRs to each Richemont `A` unit, the dividend
entitlement per DR in euro cents will be as follows:
Gross dividend Withholding tax
per DR at 35% Net dividend
in euro cents in euro cents in euro cents
Compagnie
Financiere 0.540 (0.189) 0.351
Richemont SA
Richemont SA 5.960 - 5.960
Richemont SA -
special dividend 6.000 - 6.000
Total 12.500 (0.189) 12.311
The exchange rate applicable for the conversion of euros to rand for payment of
the dividend is ZAR 9.8149 : euro 1. Accordingly the net dividend payable per DR
is ZAR 120.831 cents, as set out in the table below:
Gross dividend Withholding tax
per DR at 35% Net dividend
in ZAR cents in ZAR cents in ZAR cents
Compagnie
Financiere 5.300 (1.855) 3.445
Richemont SA
Richemont SA 58.497 - 58.497
Richemont SA -
special dividend 58.889 - 58.889
Total 122.686 (1.855) 120.831
Under the withholding tax recovery programme qualifying SACMA residents will
currently be entitled to recover the equivalent of 0.1485 euro cents per DR. The
amount recovered will be converted into ZAR and will be remitted to DR holders
who are eligible to participate in the programme once the reimbursement of the
tax has been received from the Swiss Federal Tax Authorities (`SFTA`). Your
attention is drawn to the fact that the refunds are to be paid by the SFTA in
Swiss francs. The Swiss francs received by Richemont Securities AG will be
converted into rand at the ZAR-Swiss franc exchange rate ruling at the time of
receipt. Bearing in mind the fluctuating SA Rand rate, the effective rate used
to arrive at the ZAR refund payment to DR holders will consequently differ from
that indicated above.
The payment dates for the dividend in respect of the South African DRs are as
follows:
Last date to trade "cum dividend" Friday, 14 Sept 2007
Trading commences "ex-dividend" from the
commencement of business on Monday, 17 Sept 2007
DR dividend record date Friday, 21 Sept 2007
DR dividend payment date Friday, 28 Sept 2007
DR Holders may not dematerialise or rematerialise their holding of Richemont DRs
between Monday, 17 September 2007 and Friday, 21 September 2007, both days
inclusive.
Richemont Securities AG DRs are issued subject to the terms of the Deposit
Agreement dated 25 August 1988, as amended and, by holding DRs, investors
acknowledge that they are bound by the terms of the Deposit Agreement. Copies of
the Deposit Agreement may be obtained by investors from Richemont Securities AG
or Computershare.
Richemont Securities AG may appoint a depository agent or other parties to
assist in the administration of the depository receipt programme and may provide
to such agents such information as it deems to be appropriate, including
information relating to the identity of holders of depository receipts.
7 September 2007
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 07/09/2007 13:25:01 Produced by the JSE SENS Department.
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