AUSTRALIA/NEW ZEALAND. JR/Duty Free today issued a statement exclusively through The Moodie Davitt Report following continuing Korean media speculation that the company is poised to complete a sale to Lotte Group of South Korea.
While confirming today that talks are taking place, the Melbourne-based retailer pointed out that they relate only to its Australian and New Zealand businesses and that no deal has been struck.
Several Korean media titles first published speculation about a sale of JR/Duty Free to Lotte in June. The articles, picked up and subsequently echoed by two international travel retail titles, wrongly implied that all JR/Duty Free’s businesses were for sale. At the time, The Moodie Davitt Report spoke to all parties involved and, recognising particular sensitivities involved, chose not to comment on the speculation.
The company said, “JR/Duty Free has become aware of an article published today in the Korean press in relation to the potential sale of JR/Duty Free to Lotte Corporation.
“JR/Duty Free confirms that it has been in discussion with Lotte but there are a number of inaccuracies in the report, including the suggestion that the transaction might involve JR/Duty Free’s global business and that negotiations with Lotte have concluded.
“The discussions relate only to JR/Duty Free’s Australian and New Zealand businesses and those discussions remain incomplete. At this stage, it is not certain that those discussions will be satisfactorily concluded.
“In assessing its options for JR/Duty Free’s business, JR/Duty Free has been focused on a transaction that reflects the full value for JR/Duty Free’s established and successful Australian and New Zealand business and which provides a secure future for its employees.
“If JR/Duty Free concludes a transaction with Lotte or any other party that has been involved in JR/Duty Free’s strategic review process then JR/Duty Free will make a further announcement at the time.”
JR/Duty Free operates the following businesses in Australia and New Zealand:
AUSTRALIA
- Brisbane International Airport
- Canberra International Airport
- Darwin International Airport
- Perth International Airport
- Melbourne – 185 Swanston Street
NEW ZEALAND
- Auckland International Airport – online only
- Christchurch International Airport
- Wellington International Airport
The company’s extensive Israeli business (including a successful joint venture with Gebr. Heinemann at Tel Aviv Ben Gurion International Airport) and its Tahiti activities do not form part of the discussions with Lotte.
