| Fri 5 Sep 2008, 13:46 | | RCH - Richemont Securities Ag - Exchange Rate Applicable For Dividend Payable On |
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RCH
RCH
RCH - Richemont Securities Ag - Exchange Rate Applicable For Dividend Payable On
Depository Receipts ("DRs")
Richemont Securities AG
(Incorporated in Switzerland)
Share code: RCH
ISIN: CH0013157380
("Richemont")
RICHEMONT SECURITIES AG - 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 0.78 per unit this year, an increase of 20 per cent over
the prior year. The dividend will be paid jointly by Richemont SA, Luxembourg -
which will pay Euro 0.720 per unit - and Compagnie Financiere Richemont SA
("CFR") - which will pay Euro 0.060 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 0.039 per unit. 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 on the CFR dividend. Full details of the programme will
be mailed to holders of DR`s on 26 September 2008, 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 2008 they should contact their CSDP or
Computershare Investor Services (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 0.60 (0.21) 0.39
Richemont SA
Richemont SA 7.20 - 7.20
Total 7.80 (0.21) 7.59
The exchange rate applicable for the conversion of euros to rand for payment of
the dividend is ZAR 11.4882: euro 1. Accordingly the net dividend payable per DR
is ZAR 87.195 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 6.893 (2.413) 4.480
Richemont SA
Richemont SA 82.715 - 82.715
Total 89.608 (2.413) 87.195
Under the withholding tax recovery programme qualifying SACMA residents will
currently be entitled to recover the equivalent of 0.165 euro cents per DR. The
amount recovered will be converted into ZAR and will be remitted to DR holders
who 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, 12 Sept 2008
Trading commences "ex-dividend" from the Monday, 15 Sept 2008
commencement of business on
DR dividend record date Friday, 19 Sept 2008
DR dividend payment date Friday, 26 Sept 2008
DR Holders may not dematerialise or rematerialise their holding of Richemont DRs
between Monday, 15 September 2008 and Friday, 19 September 2008, 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.
5 September 2008
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 05/09/2008 13:46:40 Produced by the JSE SENS Department.
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