Richemont targets Johannesburg after Zurich

Compagnie financière Richemont prepares dual listing. The Geneva-based holding company owning Cartier, Van Cleef & Arpels, and other fine jewelry brands has announced the intention to end its certificate of deposit program in South Africa and to list its A shares on the Johannesburg stock exchange (Jse). The one in the South African capital will be a secondary listing, adding to its existing one in Zurich. The company led by South African entrepreneur Johann Rupert operates a certificate of deposit program in South Africa through its subsidiary Richemont securities. The certificates of deposit will be traded on the Jse and can be sold in exchange for A shares at a ratio of ten certificates of deposit for one A share. «These certificates were originally created and issued to facilitate the relationship between South African investors and the company, in accordance with the exchange control requirements in place at the time», Richemont explained in an official note. «However, the certificate of deposit program is no longer necessary for this purpose, as Richemont’s A shares can now be listed, as a secondary listing, on the Jse». The proposed termination of the certificate of deposit program would provide greater flexibility to the company’s shareholders by facilitating cross-border trading of Richemont’s A shares between investors on the Jse and the six swiss exchange. The simplified structure would also reduce administrative complexity for Richemont.

Achieving these targets requires the cancellation of the certificate of deposit program, and if shareholders approve its termination and Richemont obtain relevant regulatory approvals, depositary certificate holders will receive one A share for free in exchange for ten certificates of deposit they hold, and the A shares will be listed on the Jse as a secondary listing. «The proposed termination of the certificate of deposit program will also affect the A warrant receipts traded on the Jse, which will also be revoked», Richemont concluded. «Upon termination of the certificate of deposit program, A warrants receipts holders will receive A warrants which will listed on the Jse as a secondary listing. The conversion of depositary receipts will not result in any interruption of trading in A shares. For investors who already hold A shares, their positions will not be affected».

The company’s deadline for voting on the termination of the certificate of deposit program is april 3, while the listing of A shares and A warrants on the Jse is scheduled for april 19. Finally, on april 24, the A shares and A warrants will be credited to the accounts of South African investors who previously held depositary receipts and A warrants. In Zurich, the stock closed friday’s session down by nearly 2.3 percentage points at 133.4 francs per shares (135 euros at yesterday’s exchange rate). (all rights reserved)