Travel retailer Dufry plans to launch a capital increase to raise roughly 500 million Swiss francs ($548m) and has secured the support of private equity firm Advent International.

The company said that its shareholders will meet on 6 October to approve the issue of new shares and the proceeds will be used in part to fund the announced acquisition of all remaining shares in travel-retail-store operator Hudson.

Advent International has committed to buy shares worth up to CHF415 million at CHF28.50 each. The private equity firm will buy the shares not acquired by existing shareholders, to whom the new shares will be offered first. The shares not bought by Advent may then be offered to other investors.

The offer price for the new shares will be decided in a book-building procedure. Advent will buy the shares at the agreed terms even if the shares are offered at a lower price. If the book-building procedure leads to a higher price, Advent won’t be obliged to buy the shares.

“Advent International has confirmed that it currently has no intention to acquire a controlling stake in Dufry,” the retailer said. Its stake won’t exceed 19.99%.

As part of the agreement, the private equity group will get a seat on the Dufry board. Shareholders will vote on the election of Advent’s Ranjan Sen.

Source: Private Equity News

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