China's HNA Group has struck again, acquiring a 16.79% stake in Dufry AG, a Swiss airport duty free shop operator.
No financial details were announced in a company announcement. Shares of Switzerland and Brazil-listed Dufry closed at CHF159.2 (US$160) yesterday, indicating that HNA Group is buying Dufry for a market value of around CHF1.44 billion (US$1.45 billion).
Dufry was founded in 1865, and currently operates around 2,200 duty-free and duty-paid shops located at airports, cruise liners, seaports, and other tourist destinations in 63 countries.
According to the company's 2016 annual report, Temasek Holdings and BlackRock Inc. holds 8.6% and 3.1% stakes respectively. HNA is making the purchase via its wholly owned subsidiary, Hongkong Huihaisheng Investment Co. Ltd.
Prior to Dufry, HNA had already entered the duty free sector by cooperating with two Chinese operators, including China Duty Free Group and Hainan Duty Free Co., Ltd. The deals by the Hainan Airlines-rooted Chinese conglomerate are seen as part of a plan to expand upstream and downstream in the airlines businesses.
In 2004, HNA and China Duty Free Group together established Hainan HNA China Duty Free Company, with the duo holding 70% and 30% shares respectively. After an additional capital injection, the two companies now each holds a 50% stake.
Later in 2011, HNA and Hainan Duty Free Co., Ltd. established a joint venture with HNA holding 49%. The joint venture was later acquired by Shanghai listed unit, HNA Infrastructure.
HNA and its affiliates announced at least nine major deals last year, including a US$6 billion buyout of American computer and software distributor Ingram Micro Inc., a deal to buy Carlson Hotels and the aircraft leasing business under CIT Group Inc., in addition to acquiring stakes in Hilton Worldwide Holdings for US$6.5 billion.
Last month, it led a deal to acquire an office building in New York city for US$2.21 billion, which would make HNA Group a landlord for elite U.S. corporations including JP Morgan Chase & Co. and major hedge fund Angelo, Gordon & Co.