| Fri 2 Sep 2011, 11:13 | | CFR - Richemont Securities SA - Exchange rate applicable for dividend |
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CFR
CFR
CFR - Richemont Securities SA - Exchange rate applicable for dividend
payable on Compagnie Financiere Richemont depository receipts
Richemont Securities SA
(Incorporated in Switzerland)
Share code: CFR
ISIN: CH0045159024
("Richemont")
RICHEMONT SECURITIES SA - 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 0.45 per
share. It is anticipated that this dividend will be approved by
shareholders of CFR at the annual general meeting to be held on 7 September
2011 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 0.2925
per share.
Richemont Securities SA will operate a programme for South African tax
residents, who will generally be eligible to recover 20 per cent of the 35
per cent withholding tax levied on the CFR dividend. Full details of the
programme will be mailed to holders of CFR DRs on 23 September 2011, 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 2011 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 0.0450 (0.01575) 0.02925
The exchange rate applicable for the conversion of Swiss franc to rand for
payment of the dividend is ZAR 8.86905 : Swiss franc 1. Accordingly the net
dividend payable per CFR DR is ZAR 25.9420 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 39.9107 (13.9687) 25.9420
Under the withholding tax recovery programme qualifying SACMA residents
will currently be entitled to recover the equivalent of CHF 0.009 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 SA
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, 9 September 2011
Trading commences "ex-dividend" from the Monday, 12 September 2011
commencement of business on
CFR DR dividend record date Friday, 16 September 2011
CFR DR dividend payment date Friday, 23 September 2011
CFR DR Holders may not dematerialise or rematerialise their holding of
Richemont DRs between Monday, 12 September 2011 and Friday, 16 September
2011 both dates inclusive.
Richemont Securities SA CFR DRs are issued subject to the terms of the
Deposit Agreement entered into on 18 December 1992, most recently amended
on 16 December 2010. By holding Depository Receipts, 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 SA
or Computershare Limited.
Richemont Securities SA 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.
2 September 2011
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/09/2011 11:13:01 Produced by the JSE SENS Department.
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