Company News

Dufry to enlist Alibaba as shareholder, signs China JV

ZURICH, Oct 5 (Reuters) - Alibaba plans to acquire an up to 9.99% stake in Swiss duty free group Dufry, Dufry said on Monday, as it announced a new Chinese joint venture with the tech giant.

“Alibaba Group and Dufry AG (Dufry) have agreed to enter into a collaboration to jointly explore and invest in opportunities in China to develop the travel retail business and to enhance Dufry’s digital transformation,” Dufry said in a statement.

The Swiss duty free group--which has reeled under the hit of COVID-19 and plans to ask shareholders on Oct. 6 for additional capital to fund a buyout of its Hudson Ltd unit--said it would now propose the issuance of 25 million shares, resulting in potential proceeds of around 700 million Swiss francs ($762.94 million). ($1 = 0.9175 Swiss francs) (Reporting by Brenna Hughes Neghaiwi Editing by Riham Alkousaa)