Richemont Shareholders Turn Down Activist's Board Candidate

By Joshua Kirby

Compagnie Financiere Richemont SA shareholders on Wednesday voted against electing a board candidate proposed by an activist investor in favor of an ally of the Swiss luxury-goods group's chairman.

Incumbent Nonexecutive Director Wendy Luhabe was elected with a compelling majority, a spokeswoman for Richemont said. Ms. Luhabe had been proposed by management as a representative of holders of 'A' shares in the company in response to a proposal by activist investor Bluebell Capital Partners to elect Francesco Trapani to the position.

Under the group's structure, 'A' shareholders hold the majority of the company's share capital, but the family of Chairman Johann Rupert controls 50% of voting rights through their possession of 'B' shares.

Mr. Trapani wasn't an appropriate candidate for the board, Mr. Rupert said in a letter to shareholders ahead of the vote, given his closeness to luxury-sector rival LVMH Moet Hennessy Louis Vuitton SE, where he was previously an executive.

Bluebell's proposals to raise the minimum members of Richemont's board to six from three, including an equal number of 'A'-shareholder representatives, were also rejected at the meeting, Richemont's spokeswoman said.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

September 07, 2022 08:37 ET (12:37 GMT)

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