A near-30 per cent stake in British American Tobacco is set to be sold this year after Richemont, the Switzerland-based luxury goods group, announced plans, along with South Africa’s Remgro, to spin off their holdings in the world’s second-largest listed cigarette company.

The move – driven by impending tax law changes in Luxembourg – will see Richemont distribute 90 per cent of its 19.4 per cent BAT holding to its shareholders. The remaining 10 per cent will go to Reinet, a new Luxembourg investment vehicle.