On 28 October 2008, British American Tobacco p.l.c. (the “Company”) obtained approval from the South African Reserve Bank (the “SARB”) for the secondary or inward listing of its ordinary shares (the “Shares”) on the JSE Limited in South Africa to enable the restructuring of the shareholdings in the Company held by Remgro Limited and Compagnie Financiere Richemont S.A. to take place (the “Restructurings”).
The Restructurings resulted in the receipt of Shares by South African institutional investors as part of the utilisation of their general foreign portfolio investment allowance. Being aware that the receipt of the Shares could result in South African institutional investors exceeding their investment allowances of inward listed shares, the SARB granted a dispensation of a period of 24 months from October 2008 to South African institutional investors in order that they may realign their portfolios in respect of the amount of inward listed shares that they could hold.
On 20 May 2010, the Company received notification from the SARB that the South African Minister of Finance has decided to extend the previously approved 24 months period for South African institutional investors to realign their portfolios by another 24 months until 31 October 2012.
The Company was also notified by the SARB that the decision to extend the period of 24 months was taken in the context of the South African National Treasury’s review of the current policy on inward listings and the finalisation of the prudential regulatory framework for foreign exposure by institutional investors in South Africa. Further, the Company has been advised that in the event of the implementation of such a revised policy in South Africa prior to the expiry of the approved extension period, then this new dispensation would fall away and the new policy would apply.
British American Tobacco p.l.c.