SWITZERLAND/CHINA. Dufry has been informed by Chinese conglomerate HNA Group that the latter has closed the acquisition of the 16.2% of Dufry shares formerly held by Singaporean wealth funds GIC and Temasek.
As reported, the proposed transaction was announced on 26 April 2017.
Dufry said that it welcomes HNA Group as an important shareholder.
Combined with the acquisition of financial instruments in Dufry shares disclosed on 27 May, HNA now holds a total purchase position of 20.92% of Dufry shares.
“As HNA Group is operating in several tourism- and travel-related sectors, Dufry and HNA have started to assess possible areas of collaboration with the main goal to access and to increase the share of wallet of domestic and international Chinese travellers,” Dufry said in a statement.
The transaction has proceeded despite intensive recent negative publicity in China and the world’s press about the country’s frenzied offshore M&A activity of recent years. Overseas transactions by Chinese companies hit an all-time high of US$170 billion in 2016. The Chinese government has become increasingly concerned about “systematic risks” to the Chinese banking system due to possible over-exposure to some of these deals.
Last Friday, 18 August, the Chinese cabinet issued guidelines to regulate overseas investment in certain sectors, including property, hotels, entertainment, sports clubs and the film industry. No specific mention was made of retail, aviation or travel and tourism.