Dufree AG said on Monday that it has agreed to form a joint venture with Alibaba Group Holding Limited in China, while the tech giant plans to invest in Dufree.
The Swiss-based travel retailer said the joint venture in the Chinese travel retail market would be owned by Alibaba at 51% and Dufry at 49%.
“In the context of this collaboration, Alibaba Group will invest up to a maximum of 9.99% of the post-share fringe share capital in Dufry and participate in its general capital increase, subject to the approval of Duffy’s shareholders on Oct. 6, 2020,” the company said.
Duffy had previously pledged to invest up to 415 million Swiss francs (4 450.8 million) in share purchases from Advent International Corporation. With this, along with the planned investment with Alibaba, it means that Duffy will propose a total revenue of 25 million shares or approximately CHF 700 crore during its extraordinary general meeting.
Alibaba plans to buy Advent International or shares at the same price of CHF 28.50 per share, but CHF will not invest more than 250 million, Dufry said.
Traditional Revenue plans to use the previously announced acquisition of all remaining equity interests of Hudson Ltd. to finance and use it for general corporate purposes, including the setting up and operation of the above-mentioned JV with Alibaba Group to gain growth opportunities. “To accelerate the digital transformation in China and Dufry,” he said.
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