SWITZERLAND. Dufry has concluded its ordinary capital increase by way of a rights offering, raising around CHF820 million (US$901 million) from the sale of 24,696,516 new shares. The company set the share price at CHF33.22 (US$36.50) each, in line with the volume weighted average price of the existing shares as of market close on 19 October.
The envisaged gross proceeds from the capital increase will be used in part to finance the acquisition of all remaining equity interest in Hudson Ltd, previously announced on 19 August as well as for general corporate purposes. The latter may include the set-up and operations of the joint venture announced recently with Alibaba Group to pursue growth opportunities in China and to accelerate Dufry’s digital transformation.
10,612,024 new shares were subscribed by existing shareholders as part of the rights offering, 9,178,033 new shares have been allocated to Advent International and 4,906,459 new shares have been allocated to Alibaba Group, corresponding to the maximum possible total of 24,696,516 new shares sold in the offering.
Immediately following the closing of the offering, Advent International will own a stake of 11.4% in Dufry and Alibaba Group 6.1%. Advent International and Alibaba Group have agreed to a lock-up period of six months following the first day of trading of the new shares.
The new shares are expected to be listed and eligible for trading on SIX Swiss Exchange as of 22 October. The settlement and delivery of the new shares against payment of the subscription price is expected to occur on that date.
Alongside the rights offering, Dufry and Alibaba Group have agreed a term sheet under which Alibaba Group shall invest CHF69.5 million in Dufry via mandatory convertible notes. For this purpose, Dufry shall issue three-year mandatory convertible notes with a 4.1% coupon per annum to Alibaba Group, convertible into approximately 2.1 million ordinary shares of Dufry at CHF33.22 per Dufry share.
Note: Dufry CEO Julián Díaz delivered a keynote interview at the Moodie Davitt Virtual Travel Retail Expo last week, where he discussed the Alibaba deal and wider company strategy. Click here for access.
