Swiss travel retailer Dufry on Thursday said it was buying the 49% stake in Hellenic Duty Free (HDF) it does not already own. Dufry will acquire the holding from Greek rival Folli Follie Group for €328 million ($452 million).
According to a report by Reuters, Dufry bought a controlling 51% stake in HDF for €200.5 million in 2012. The deal included an option to acquire the remaining 49% stake in 2016.
Dufry will pay for the remaining stake with a combination of €175 million in cash and 1,231,233 ordinary shares to be issued to Folli Follie. The shares to be issued are valued at €153 million, the report said.
Dufry is planning to refurbish and expand retail space at key airports in Greece. The deal will also allow the full financial integration of HDF, Reuters said.
The Swiss travel retailer had entered into a new €500 million term loan with a group of banks to finance the cash portion of the deal. The loan will also be used to repay HDF's €335 million debt with local banks in Greece, the report said.
Join the Conversation