GIC, Temasek to buy $468m worth of shares each in Swiss travel retailer Dufry

Visual from the website of Dufry

Singapore’s sovereign wealth fund GIC and the city state’s government owned investment arm Temasek Holdings, along with Qatar Investment Authority, have each committed to buying up to 450 million Swiss francs ($468 million) worth of new shares in Swiss company Dufry AG as part of the later’s buyout of Italy’s World Duty Free SpA (WDF).

Dufry Monday said it plans to raise at least 2.1 billion euros of equity and as much as 1.5 billion euros of debt for the deal, implying that it values World Duty Free at 3.6 billion euros.

The takeover will see Dufry enter into a binding agreement with Edizione Srl, a company controlled by the Benetton family, to acquire its 50.1 per cent stake in World Duty Free SpA. Post the transaction, Dufry will make an offer for the rest of World Duty Free.

“The rights issue is fully secured by a combination of the underwriting by a bank consortium as well as commitments by the investors GIC the Qatar Investment Authority (“QIA”) and Temasek, which have all committed to invest up to CHF 450 million each in equity in the combined entity,” Dufry’s statement said.

Dufry said the transaction would create a series of new growth opportunities thanks to the broader breadth of the combined platform.

Listing out the rationale for the deal, the company said: “The combination with WDF will further enhance Dufry’s global position in the travel retail industry and the combined entity will be present in 67 countries and reach a market share of approx. 24 per cent in airport retail globally The transaction will enhance Dufry’s portfolio with attractive long-term concessions across several major European airports, including the recently extended London Heathrow airport with a large number of emerging market consumers and the Spanish airports which ideally complement Dufry’s strong Mediterranean footprint; in addition, the transaction will also strengthen Dufry’s operations in North and Latin America, Asia and the Middle East.”

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Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.