Private equity group Advent International will have a stake of 11.4% and China’s Alibaba BABA.N 6.1% in Dufry DUFN.S after a capital increase that raised 820 million Swiss francs ($901 million), the Swiss duty free company said on Tuesday.
A share offering was priced at 33.22 francs each, a discount to Monday’s closing price of 34.21.
Dufry had already flagged that Advent and Alibaba were coming on board as part of the rights issue to help fund its $311 million buyout of its Hudson Ltd HUD.N unit.
Advent and Alibaba have agreed to a lock-up period of six months following the first day of trading of the new shares set for Oct. 22, Dufry said.
Dufry and Alibaba Group have also agreed that Alibaba will invest 69.5 million francs in Dufry via three-year mandatory convertible notes with a 4.1% coupon convertible into approximately 2.1 million shares at 33.22 francs each.
Dufry this month said proceeds of the rights issue would not only finance the Hudson deal, but also fund general corporate purposes, which could now include a new joint venture with Alibaba in China’s travel retail business.
Alibaba will have a 51% stake in the joint venture, which will also seek to help Dufry expand in online travel retail.