Alibaba Group Holding Ltd (NYSE:BABA) announced plans to acquire up to 9.99% stake in Switzerland-based travel retailer Dufry AG.
The investment will be made through a rights issue that will rake in $763 million — higher than the $545 million Dufry had hoped to raise prior to Alibaba’s commitment.
Alibaba is paying CHF 28.50 ($31.05 U.S.) per share — the same rate that Advent International Corporation is paying to invest CHF 415 million ($452.10 million) in the retailer.
Dufry said that the proceeds of the investments would be used to acquire the remaining equity of the New Jersey-based airport facilities provider Hudson Ltd as well as, for general corporate purposes.
The Jack Ma-co-founded group and the Swiss retailer are also forming a joint venture to explore China's travel retail business and to enhance Dufry’s digital transformation.
The joint venture will be 51% owned by Alibaba Group and 49% by Dufry.
Dufry first entered the Chinese market in 2008 and is present in Hong Kong and Macau as well, the company said.
In August, Hudson had entered into an agreement to sell all its remaining equity at $7.70 in cash to Dufry.
Once the pact is completed, Hudson would operate as a wholly-owned subsidiary and would be de-listed from the New York Stock Exchange.
BABA shares began Monday up 34 cents to $288.51
Tech Insider
