LVMH Sells DFS Hong Kong, Macau Operations to China Tourism Group Duty Free
LVMH's luxury travel retailer DFS is selling its Hong Kong and Macau stores and Greater China intangible assets to China Tourism Group Duty Free (CTG Duty-Free). LVMH and the Miller family will also subscribe to new shares in CTG Duty-Free.
DFS, LVMH's global travel retail business, has agreed to sell its retail operations in Hong Kong and Macau and its intangible assets in Greater China to China Tourism Group Duty Free (CTG Duty-Free). The deal signifies a strategic shift for DFS, which will continue its worldwide operations outside of this transaction's scope.
The acquisition by CTG Duty-Free, a prominent travel retailer, includes DFS's physical stores in Hong Kong and Macau as well as brand names and intellectual property rights for use within Greater China. The transaction is being conducted in cash through CTG Duty-Free's subsidiary.
Complementing the sale, LVMH and the Miller family, a co-founder of DFS, will invest in CTG Duty-Free by subscribing to newly issued H-shares listed in Hong Kong. This investment is to be made following the completion of the retail business sale.
Furthermore, DFS and CTG Duty-Free have entered into a memorandum of understanding to explore strategic collaborations in the retail sector. This partnership aims to leverage the strengths of both companies for mutual benefit in the Greater China region, potentially covering areas such as product sales, store development, and customer experience.
The transaction is expected to close in approximately two months, pending customary closing conditions. China Galaxy International advised CTG Duty-Free financially, with King & Wood Mallesons and Freshfields providing legal counsel.