| Fri 3 Sep 2010, 13:03 | | CFR - Richemont Securities AG - Exchange rate applicable for dividend payable |
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CFR
CFR
CFR - Richemont Securities AG - Exchange rate applicable for dividend payable
on Compagnie Financiere Richemont Depository Receipts (`CFR DRs`)
Richemont Securities AG
(Incorporated in Switzerland)
Share code: CFR
ISIN: CH0045159024
("Richemont")
RICHEMONT SECURITIES AG - EXCHANGE RATE APPLICABLE FOR DIVIDEND PAYABLE ON
COMPAGNIE FINANCIERE RICHEMONT DEPOSITORY RECEIPTS (`CFR DRs`)
The dividend payable to holders of Richemont Securities` CFR DRs resident in
the South African Common Monetary Area (`SACMA`) is derived from the dividend
paid by Compagnie Financiere Richemont SA, Switzerland (`CFR`) to holders of
Richemont `A` shares. The CFR DR dividend payable to SACMA residents is
payable in Rand.
The Board of Directors have recommended a total dividend of CHF 0.35 per
share. It is anticipated that this dividend will be approved by shareholders
of CFR at the annual general meeting to be held on 8 September 2010 in Geneva.
The dividend payable by CFR will be subject to Swiss withholding tax of 35 per
cent, resulting in a net dividend of CHF 0.2275 per share.
Richemont Securities AG will operate a programme for South African tax
residents, who will generally be eligible to recover 20% of the 35%
withholding tax levied on the CFR dividend. Full details of the programme will
be mailed to holders of CFR DRs on 27 September 2010, at the time of the
payment of the dividend. In the past certain CFR 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 CFR DR
Holders contact their CSDP in advance of the payment to ensure the information
held in the STRATE system is correct. Should CFR DR holders not receive
details of the withholding tax recovery process by mail by late October 2010
they should contact their CSDP or Computershare Investor Services (Pty)
Limited ("Computershare").
As CFR DR`s trade in the ratio of 10 DRs to each Richemont `A` share, the
dividend entitlement per CFR DR is as follows:
Gross dividend Withholding tax
per CFR DR at 35% Net dividend
in Swiss francs in Swiss francs in Swiss francs
Total 0.0350 (0.01225) 0.02275
The exchange rate applicable for the conversion of Swiss franc to rand for
payment of the dividend is ZAR 7.1211 : Swiss franc 1. Accordingly the net
dividend payable per CFR DR is ZAR 16.2005 cents, as set out in the table
below:
Gross dividend Withholding tax
per CFR DR at 35% Net dividend
in ZAR cents in ZAR cents in ZAR cents
Total 24.9239 (8.7234) 16.2005
Under the withholding tax recovery programme qualifying SACMA residents will
currently be entitled to recover the equivalent of CHF 0.007 per CFR DR. The
amount recovered will be converted into ZAR and will be remitted to CFR 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 ZAR : Swiss franc exchange rate, the effective
rate used to arrive at the ZAR refund payment to CFR DR holders will differ
from that applicable to the dividend payment itself.
The anticipated payment dates for the dividend in respect of the South African
CFR DRs are as follows:
Last date to trade "cum dividend"(`LDT`) Friday, 10 September 2010
Trading commences "ex-dividend" from the
commencement of business on Monday, 13 September 2010
CFR DR dividend record date Friday, 17 September 2010
CFR DR dividend payment date Monday, 27 September 2010
CFR DR Holders may not dematerialise or rematerialise their holding of
Richemont DRs between Monday, 13 September 2010 and Friday, 17 September 2010
both dates inclusive.
Richemont Securities AG CFR DRs are issued subject to the terms of the Deposit
Agreement dated 25 August 1988, as amended on 18 December 1992, 28 September
2001 and 7 August 2008. By holding CFR 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.
3 September 2010
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 03/09/2010 13:03:52 Produced by the JSE SENS Department.
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