Dufry Sets out Rights Offering Following Deals With Alibaba, Advent
October 06 2020 - 3:53AM
Dow Jones News
By Joshua Kirby
Dufry AG on Tuesday laid out the terms of the planned rights
issuance that will increase its share capital to up to 401 million
Swiss francs ($438.2 million), following investment agreements from
Alibaba Group Holding Ltd. and Advent International Corp.
The Swiss travel retailer said the board of directors would
propose to issue up to about 24.7 million new shares with a par
value of CHF5 each at an extraordinary general meeting scheduled
for Tuesday. This would increase its share capital by up to CHF123
million to a maximum CHF401 million, Dufry said.
On Monday, Dufry said Alibaba would take a stake in the company,
and the two would launch a joint venture in China. Dufry previously
secured a commitment from private-equity firm Advent International
to invest up to CHF415 million via a purchase of shares.
Alibaba plans to buy shares at CHF28.50--the same price as
Advent International--but won't invest more than CHF250 million,
Dufry said.
The capital increase will take place in an at-market rights
offering, with existing shareholders holding pre-emptive rights on
the shares. Existing shareholders will get one subscription right
for the new shares at a rate of four new shares for every nine
already held. These rights will lapse if not exercised during the
period of Oct. 12-Oct. 19, Dufry added. The international offering
period will run from Oct. 12 to Oct. 20.
As previously reported, the expected CHF700 million in proceeds
from the capital increase will be used in part to purchase the
remaining equity interest in U.S. travel-retail store operator
Hudson Ltd. and for general corporate purposes.
The new shares are expected to start trading on the SIX Swiss
Exchange on Oct. 22.
Write to Joshua Kirby at joshua.kirby@dowjones.com
(END) Dow Jones Newswires
October 06, 2020 03:38 ET (07:38 GMT)
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