Alibaba Group Holding Ltd (BABA)

[FUNMAN]

Alibaba purchasing up to 10% Dufry stake, funding Hudson buy out

Oct. 5, 2020 9:39 AM ET|About: Alibaba Group Holding Limited (BABA)|By: Brandy Betz, SA News Editor

I think this is an interesting investment. Monetizing it might take a few years, but it seems to me to be opportunistic. BABA has the cash to take advantage of other companies covid-troubles. - FUNMAN

Alibaba (NYSE:BABA) will purchase up to a 9.99% stake in Swiss duty-free retailer Dufry, participating in a new $763M fundraising round.

Dufry and Alibaba will also form a joint venture combining the tech giant's digital expertise with Dufry's travel retail business.

The retailer is seeking funds after taking a major hit during the pandemic. Alibaba has increased its brick-and-mortar investments as a way to use its tech in physical locations.

PE firm Advent international will invest as much as $497M in Dufry.

Dufry will use the proceeds to buy out the rest of its Hudson (NYSE:HUD) unit for $311M to simplify the company's corporate structure. The action will delist Hudson from the NYSE.