Shares to be held in treasury and will not be cancelled.
Richemont is launching a share buy-back that will see the luxury goods company buy back up to 10 million of its A shares over the next two years.
Completion of the proposed buy-back will help the group regain 1.7 percent of capital and 1 percent of the voting rights of the company.
Richemont said that it will not cancel the shares it buys back and that no second trading line will be introduced as a consequence of the buy-back programme. The group plans to hold the shares in treasury to hedge awards to executives under the group’s stock option plan.
Richemont currently holds 20.3 million A shares, representing 3.5 percent of the capital and 1.9 percent of the voting rights of the company, in treasury as a consequence of previous buy-back programmes linked to the group’s stock option plan. In addition, Richemont holds over-the-counter call options to acquire a further 13.6 million A shares, representing 2.4 percent of the capital and 1.3 percent of the voting rights of the company.
Richemont is a luxury goods company that includes watch and jewellery brands Cartier, Van Cleef & Arpels, Piaget, Vacheron Constant and Panerai.