Dufry, Alibaba Group Agree to Form Joint Venture in China and Plan Equity Investment
October 05 2020 - 1:11AM
Dow Jones News
By Olivia Bugault
Dufry AG said Monday that it has agreed with Alibaba Group
Holding Ltd. for the formation of a joint venture in China, while
the tech giant plans to invest in Dufry.
The Swiss-based travel retailer said the joint venture in the
Chinese travel retail market will be owned at 51% by Alibaba and
49% by Dufry.
"In connection with this collaboration, Alibaba Group will
invest in Dufry up to a maximum of 9.99% of the post-offering share
capital and will participate in its ordinary capital increase,
which is subject to approval of Dufry's shareholders at its
upcoming EGM on 6 Oct. 2020," the company said.
Dufry previously secured a commitment to invest up to 415
million Swiss francs ($450.8 million) in shares purchase from
Advent International Corporation. This, together with the planned
investment with Alibaba, means Dufry will propose an issuance of up
to 25 million shares, or roughly CHF700 million in gross proceeds,
during its extraordinary general meeting, it said.
Alibaba plans to buy shares at the same price as Advent
International, or CHF28.50 per share, but won't invest more than
CHF250 million, Dufry said.
"The envisaged proceeds are planned to be used to finance the
previously announced acquisition of all remaining equity interest
in Hudson Ltd. and for general corporate purposes, which may
include the setup and operations of the above-mentioned JV with
Alibaba Group to pursue growth opportunities in China and to
accelerate Dufry's digital transformation," it said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
October 05, 2020 01:56 ET (05:56 GMT)
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