| Tue 10 Sep 2019, 11:03 | | COMPAGNIE FINANCIÈRE RICHEMONT SA - Exchange rate for dividend payable on depository receipts in respect of underlying CFR SA A shares ('CFR DRs) |
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Exchange rate for dividend payable on depository receipts in respect of underlying CFR SA A shares ('CFR DRs):
Compagnie Financiere Richemont SA Depositary Receipts
Issued by Richemont Securities SA ("Richemont Securities" or "Richemont")
(Incorporated in Switzerland)
Share code: CFR
ISIN: CH0045159024
Depositary Receipt Code: CFR
RICHEMONT SECURITIES SA - EXCHANGE RATE APPLICABLE FOR DIVIDEND PAYABLE ON DEPOSITORY RECEIPTS IN RESPECT OF UNDERLYING COMPAGNIE FINANCIERE RICHEMONT SA 'A' SHARES ('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 has recommended a total dividend of CHF 2.00 per share. It is anticipated that this dividend will be approved by shareholders of CFR at the annual general meeting to be held on 11 September 2019 in Geneva. The dividend payable by CFR will be subject to Swiss withholding tax of 35 percent, resulting in a net dividend of CHF 1.30 per share.
Richemont Securities SA will operate a programme for South African tax residents, who will generally be eligible to recover 20 percent 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 26 September 2019, at the time of the payment of the dividend. In the past, certain CFR DR Holders may have lost their opportunity t
Following the increase in the South African dividends tax rate from 15 percent to 20 percent a revised binding class ruling was obtained from the South African Revenue Service. In terms of this ruling, those depository receipt holders who are not exempt from the South African dividends tax will be subject to a rate of 5 percent South African tax because of the credit available in respect of the Sw
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 per CFR|Swiss withholding|Net dividend in |
| |DR in Swiss francs |tax at 35% |Swiss francs before|
| | |in Swiss francs |South African |
| | | |dividend tax |
+-----+----------------------+-----------------+-------------------+
|Total|0.2000 |(0.0700) |0.1300 |
+-----+----------------------+-----------------+-------------------+
The exchange rate applicable for the conversion of Swiss franc to rand for payment of the dividend is ZAR 14.79290: Swiss franc 1. Accordingly, the net dividend payable per CFR DR after South African dividend tax is ZAR 177.51480 cents, as set out in the table below:
Gross dividend Swiss withholding South African
Per CFR DR tax at 35% withholding tax Net dividend
in ZAR cents in ZAR cents at 5% in ZAR cents
Total 295.85800 (103.55030) (14.79290) 177.51480
Under the withholding tax recovery programme, qualifying SACMA residents will currently be entitled to recover the equivalent of CHF 0.040 per CFR DR. The amount recovered will be converted into rand 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 payment dates for the dividend in respect of the South African CFR DRs are anticipated to be as follows:
+----------------------------------------+----------------------------+
|CFR DR conversion exchange rate |Tuesday, 10 September 2019 |
+----------------------------------------+----------------------------+
|Last date to trade "cum dividend" |Tuesday, 17 September 2019 |
+----------------------------------------+----------------------------+
|Trading commences "ex-dividend" from the|Wednesday, 18 September 2019|
|commencement of business on | |
+----------------------------------------+----------------------------+
|CFR DR dividend record date |Friday, 20 September 2019 |
+----------------------------------------+----------------------------+
|CFR DR dividend payment date |Thursday, 26 September 2019 |
+----------------------------------------+----------------------------+
CFR DR holders may not dematerialise or rematerialise their holding of CFR DRs between Wednesday, 18 September 2019 and Friday, 20 September 2019 both days inclusive, nor will transfers to/from the South African branch register be permitted between 18 September 2019 and 20 September 2019 (both dates inclusive).
Richemont Securities SA Depository Receipts are issued subject to the terms of the Deposit Agreement entered into on 18 December 1992, most recently amended on 26 March 2014. 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 Inves
Richemont Securities 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.
10 September 2019
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 10/09/2019 11:03:00
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