(Reuters) – Alibaba BABA.N plans to acquire an up to 9.99% stake in Swiss duty free group Dufry DUFN.S, 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 HUD.N 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).
Reporting by Brenna Hughes Neghaiwi; Editing by Riham Alkousaa
