Swiss luxury goods group Compagnie Financiere
Richemont AG (CFRUY.PK) Friday announced a shareholder loyalty scheme,
under which tradable warrants will be issued to shareholders.
This will allow them either to trade the warrant or, subject to the
terms and conditions of the warrants, acquire new Richemont A shares
in three years at a potentially beneficial exercise price.
The company on May 15 had said that its Board of Directors would
propose a dividend of CHF 1.00 per A share / CHF 0.10 per B share at
the upcoming AGM and that it was considering an equity-based
shareholder loyalty scheme. The 2020 Annual General Meeting will be
held on September 9.
The exercise price will be set on the basis of the volume-weighted
average market price of the Richemont A shares before the 2020 AGM.
The maturity of the warrants will be set at three years.
This will allow shareholders who hold the warrants until maturity to
benefit from any potential upside in the market price of the
Richemont A shares during the lifetime of the warrants.
Further, in connection with the issuance of the warrants, the company
will ask shareholders at the upcoming 2020 Annual General Meeting to
approve conditional share capital increase.
The company would also ask them to authorise the issuance of a
corresponding number of new shares upon exercise of the warrants.
Johann Rupert, Chairman of Richemont, said, “We are currently facing
an unprecedented global health crisis. Predicting the likely scope
and timing of a recovery in demand remains difficult, if not
impossible. … the Board of Directors has decided that it is
appropriate to retain an extra liquidity buffer with a reduced
dividend level while awarding shareholders a supplementary benefit
that will allow them to capture any ultimate improvement in global