Today at the Zurich Stock Exchange, a press release from the Richemont Group unveiled new information concerning its shareholder loyalty plan, established yesterday at an Extraordinary General Meeting.
The Group‘s press release was published today with new details for the month of November.
The Richemont luxury group had already announced new elements concerning its loyalty program in October after having halved its shareholders‘ dividends during the last fiscal year.
Richemont’s Chairman of the Board of Directors and key shareholder Johann Rupert had committed himself in mid-May to create a “financial instrument” that would compensate for this reduction in the dividend to one franc per share.
These new decisions were taken at a meeting yesterday in the presence of all the group’s shareholders and members of the Executive Committee.
At the end of this meeting, it was agreed with the group’s shareholders that a conditional capital will be created, i.e. a capital consisting of shares with option rights. This will enable their holders to buy or sell them at a price agreed in advance, i.e. the exercise price.
The Swiss group plans to offer subscription vouchers (also called warrants) to the various shareholders as of November 27. These are option certificates allowing them to play on changes in value, both upwards and downwards, which will be listed on the SIX Swiss Exchange, the financial company managing the Zurich, Geneva and Basel stock exchanges.
The exercise price of one option has been set by the Group at CHF 67 for three years. However, in order to be able to purchase one Richemont share, 67 warrants will be required for the purchase, which will be put into circulation as of November 27.
One of the managers of the luxury brand Cartier, a subsidiary of the Swiss group, has planned to issue nearly 22 million new shares under this new arrangement, one share allowing the issue of two options.
Analyst Patrik Schwendimann commented on the new elements of this plan: “As most of the information is already known, today’s announcement comes as no surprise, given that each share entitles the holder to two options. For example, 1,000 shares will enable the issue of 2,000 options and with these 29 shares can be acquired at a unit price of 67 Swiss francs in three years’ time.
All in all, this is an increase in the number of shares in the group of about 3%.
Featured photo : © Richemont
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