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COMPAGNIE FINANCIERE RICHEMONT SA - Exchange rate for dividend payable on depository receipts in respect of underlying CFR SA A shares ('CFR DRs)

Release Date: 10/09/2019 11:03
Code(s): CFR     PDF:  
 
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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 to reclaim the withholding tax due to incorrect contact information being supplied to Strate. We suggest that CFR DR Holders contact their CSDP or stockbroker in advance of the payment to ensure the information held in the Strate system is correct. In completing last year's withholding tax reclaim, claimants may have included their email address. For all of those who provided this information, the withholding tax reclaim form will be sent by email to you. For those who did not provide email details we would ask you to contact Computershare at the following address WHT.Richemont@Computershare.co.za Once received Computershare will email the withholding tax reclaim form to you for your completion. We hope that this may alleviate the postal difficulties some claimants have experienced in the past. If you do not have an email address, please contact Computershare on 0861 100 935, to arrange a withholding tax reclaim form to be posted to you.

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 Swiss withholding tax paid. Those depository receipt holders who qualify for exemption from the South African tax (e.g. South African companies and non-residents of South Africa) must ensure that they have filed the relevant exemption forms with their brokers/ banks in order to ensure that no South African tax is withheld.

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 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 rand: Swiss franc exchange rate ruling at the time of receipt. Bearing in mind the fluctuating rand: Swiss franc exchange rate, the effective rate used to arrive at the rand refund payment to CFR DR holders will differ from that applicable to the dividend payment itself.

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 Investor Services Proprietary Limited.

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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