Advent to commit CHF 415m in Dufry rights offering

Dufry plans to submit the planned equity raise for shareholder consent in an extraordinary general meeting scheduled for 6 October 2020. The total rights offering aims to generate gross proceeds of CHF 500m. 

Advent plans to obtain a minority stake in the business and is buying shares in Dufry at CHF 28.5 apiece. The GP has also committed to a six-month lock-up period following the first day of trading of the offered shares.

The stake acquired by Advent will not exceed 19.99%, Dufry said in a statement, and the GP currently has no intention to acquire a majority stake in the business.

At the same meeting, Dufry will propose the appointment of Ranjan Sen as an independent member of its board of directors.

Advent aims to support Dufry and its capital structure during the unprecedented pressure that the Covid-19 pandemic has put on the travel industry.

The proceeds of the rights issue will also be used to acquire the remaining equity stake in listed US-based market peer Hudson at €6.49 apiece.

Advent originally acquired a 75% stake in Dufry from Grupo Areas in February 2004 in a deal valued at €161m. The following year, Dufry underwent a partial flotation with proceeds of €210m for Advent. Advent subsequently merged the business with Hudson in 2008 via a share swap.

In 2013, Advent sold its 13% stake in Dufry, listing 3.9 million shares in Dufry, valued at more than €350m.

Dufry sells duty-free and duty-paid goods at its retail sites in airports. It has 2,300 sites and operates in 65 countries. Founded in 1865 and based in Basel, it had a market capitalisation of CHF 3.48bn in 2013 and currently has a market capitalisation of CHF 1.56bn. It reported 2019 turnover of CHF 8.8bn.

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