Food
Malaysian duty free retailing group Duty Free International (DFI) is primed to sell a minority stake of its business to Heinemann Asia Pacific.
The sale and purchase agreement includes the disposal of a 10% equity interest plus one share – comprising an aggregate 20,996,384 shares – in wholly-owned subsidiary DFZ Capital Berhad (DFZ) to Heinemann Asia Pacific for a consideration of €19,700,000.
Under the terms, Heinemann Asia Pacific are also entitled to purchase a second tranche of shares in DFZ Capital Berhad (DFZ) via a call option (€1 per share) in an 18-month period beginning on the date that the first tranche of sales are completed.
A further option to purchase a third tranche of shares in a 12-month period will begin on the date of expiry of the second tranche call option period – taking the total share eligibility of Heinemann Asia Pacific to 25% in a potential overall transaction of €52.21 million.
The completion of the sale and purchase of the first tranche of shares is expected to take place on 1 June.
A DFI statement read: ‘The company views HAP as a strategic investor, and the proposed disposal is expected to enable the company to benefit from the resources and expertise of Gebr. Heinemann and HAP in the areas of product assortment and costing, retail store management, distribution and logistics management of DFZ products.’
‘HAP’s investment in DFZ will allow Malaysians and visitors to Malaysia an enhanced travel retail experience, one on par with the best available in the world. The proposed disposal is also expected to further strengthen the group’s financial strength, enabling the group to consider future business opportunities.’
Heinemann Asia Pacific CEO Max Heinemann is confident the joint venture with DFZ will realise synergies and new growth opportunities in Malaysia.
Gebr. Heinemann says the joint venture agreement will not only strengthen the presence of the company in Malaysia but will ‘realise gross margin and operational synergies for DFZ Capital Berhad’, with Heinemann Asia Pacific involved in day-to-day operations and overall decision making.
Max Heinemann, CEO of Heinemann Asia Pacific said: “Looking at the similar business models and corporate cultures of both companies, Gebr. Heinemann and DFI believe this joint venture to be a great strategic fit for growth together in Malaysia.”
Malaysia’s fast-growing retailing group has more than 30 years’ experience operating at airports, seaport, downtown, border towns and popular tourist destinations at entry and exit points on the peninsular.
DFZ operates duty free retail, duty free wholesale and duty paid outlets throughout the region in areas such as Pedang, Besar, Langkawi, Bukit Kayu Hitam, Kuala Lumpur International Airport and Johor Bahru.
