Richemont Securities splits

Johannesburg -  Richemont [JSE:CFR] and Reinet Investments [JSE:REI] said on Wednesday that their jointly-owned Swiss affiliate Richemont Securities AG has been separated into two new entities.

The two entities will be responsible for the issue of Depositary Receipts (DRs) traded on the JSE, in respect of underlying Richemont and Reinet shares.

One of the new entities, to be known as Richemont Securities SA, will assume responsibility for the issue of Richemont DRs, while the second entity, Reinet Securities SA, will be responsible for the issue of Reinet DRs.

The parties said this will eliminate the dual role which has been performed by Richemont Securities AG since the formation of Reinet in 2008.

Richemont Securities SA will be a wholly-owned subsidiary of Compagnie Financiere Richemont SA while Reinet Securities SA will be a wholly-owned subsidiary of Reinet.

"The creation of the two new entities will have no impact on the holders of either Richemont DRs or Reinet DRs. DR-holders need take no action. DRs will continue to be traded on the JSE and settled through STRATE as has been the case up to now," they said.

The separation comes into effect on 16 December 2010.