Richemont to Open Secondary Listing in South Africa

By Joshua Kirby

Swiss luxury-goods giant Compagnie Financiere Richemont SA is to open a secondary share listing in South Africa, replacing a depository receipt program in the country in a bid to reduce complexity and streamline trading.

If the process is approved, 'A' shares will trade via a secondary listing on the Johannesburg exchange, Richemont said Friday.

The group, whose chairman is South African billionaire Johann Rupert, will end its existing South Africa depository-receipt programme, with one 'A' share exchanged for every 10 depository receipts held.

The program was originally set up to comply with South African exchange-control rules that no longer apply, and a new listing would facilitate cross-border trading of 'A' shares, as well as reducing complexity for the company, Richemont said.

The listing should go ahead next month, said Richemont, which owns jewelers Cartier and Van Cleef & Arpels.

Under Richemont's structure, 'A' shareholders hold the majority of the company's share capital, but the Rupert family controls 50% of voting rights through their possession of 'B' shares. The company batted off an effort last year by an activist investor to introduce its own 'A' shareholder representative to the group's board of directors and to rebalance 'A' and 'B' representation on the board.

Richemont's primary listing is on the SIX Swiss Exchange.

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

(END) Dow Jones Newswires

March 17, 2023 02:50 ET (06:50 GMT)

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