Government of Singapore Investment Corp (GIC) and Temasek Holdings have each committed to buying up to 450 million Swiss francs (S$641 million) worth of shares in Swiss travel retailer Dufry, which is raising funds to acquire World Duty Free (WDF).
Basel-based Dufry announced that it will acquire holding company Edizione's 50.1 per cent stake in WDF at 10.25 euros per share, after which it will launch a tender offer for the remaining 49.9 stake at 10.25 euros per share. The deal values WDF at about 3.6 billion euros (S$5.37 billion), of which at least 2.1 billion euros will be financed through equity via a rights issue and up to 1.5 billion euros through debt.
"Dufry has secured equity investment commitments from GIC, Qatar Investment Authority and Temasek for up to CHF 450 million each in the form of a commitment to purchase shares for which existing shareholders have not exercised their pre-emptive rights in the rights issue," Dufry said.
The move is expected to strengthen Dufry's position in the global travel retailer industry, giving it a market share of about 24 per cent worldwide in airport retail.