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This week, Chinese online shopping giant Alibaba detailed its plans to purchase a 10% stake in Dufry. The Swiss company is the largest global operator of duty-free shops at airports, holding over 2,500 sites worldwide. Dufry is looking for emergency funding of around CHF 700m after a 70% drop in sales this year. This is as a result of the impact of the pandemic.
Alibaba To Create New Joint Venture
Alibaba will collaborate with Advent International, a private equity group to underwrite a rights issue that will be offered to Dufy shareholders this week. Advent had said last month that it would purchase CHF 455 million worth of shares issued in the capital increase not taken up by current shareholders.
Alibaba has said that it will purchase shares at the same price CHF 28.5 a share for a total of CHF 250 million. The terms of the deal also include a commitment by Dufry to create a new joint venture with Alibaba in China.
Commenting on the deal, Dufry released a statement this week with CE...
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