Duty Free Intl to acquire the around 15 percent of DFZ Capital it doesn’t already own

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Duty Free International has entered a deal to acquire the around 15 percent of DFZ Capital it doesn’t already own from Heinemann Asia Pacific (HAP) for around 45.80 million ringgit, the company said in a filing to SGX Tuesday.

“The acquisition by the company is part of the business optimisation strategy in relation to the current business environment. The acquisition will enable the company to hold 100 percent equity interest in DFZ so to have absolute control in the conduct of the business and affairs of DFZ Group,” Duty Free International said.

The consideration will be paid in U.S. dollars at completion, the filing said.

In addition, Duty-Free International will pay the trade payables due to HAP, amounting to US$4.19 million, on the completion of the deal, the filing said.

Based on the audited financial statements for the fiscal year ended 28 February 2021, DFZ Capital’s net asset value was 161.92 million ringgit, the filing said.

DFZ Capital and its subsidiaries are mainly involved in trading of duty-free goods and non-dutiable merchandise, where the duty-free retail outlets, duty-free wholesale outlets and duty-paid retail outlets of the DFZ Group located in Peninsular Malaysia, including at the Kuala Lumpur International Airport, the filing said.

The deal will also terminate ancillary agreements between DFZ Capital and HAP over the supply of duty-free products, the filing said.

HAP, a wholly-owned subsidiary of Gebr. Heinemann SE & Co KG, is a multi-category duty free retailers at KLIA2, Kuala Lumpur, Malaysia retailing under the brand “Be Duty Free,” as well as at Sydney International Airport, Gold Coast International Airport and Hong Kong
International Airport, the filing said.

In conjunction with the deal, Heyde Hendrik Korbinian, age 34, will cease to be the operations director of DGZ Capital, effective 28 February 2022 will be placed on garden leave from 7 December to 28 February, according to a separate filing to SGX. He was appinted to his position in 2016, the filing said.