BABA Alibaba Group Holding Limited

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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