Atlan get nod to sell up to 25% in duty free business to Heinemann

PETALING JAYA: Atlan Holdings Bhd's 79.09% unit, Duty Free International Limited (DFI), has received shareholders' approval to dispose up to 25% stake plus one share in its wholly owned subsidiary DFZ Capital Bhd (DFZ) to Heinemann Asia Pacific Pte Ltd.
DFZ is the largest multi-channel duty free and duty paid retailing group in Malaysia operating under the ZON brand of retail shops.
"We view Heinemann as a strong business partner and strategic investor. The completion of the proposed sale will bring significant positive changes to DFZ," DFI executive director Lee Sze Siang said in press release yesterday.
Going forward, he said, DFI will leverage on Heinemann resources and expertise in the areas of purchasing, merchandising, product assortment/costing, retail store management, distribution and logistics management.
Heinemann Asia Pacific is one of the leading multi-category duty free retailers at KLIA2 operating under the brand "be Duty Free".
"We believe that this alliance will further enhance the overall travel retail experience in Malaysia, to bring us on par with the best available in the world. The proposed sale will also further strengthen DFI's financial position and allow the company to consider future business opportunities," he added.
The proposed sale is targeted to be completed by next month. On completion, Heinemann will be entitled to board representation on the board of directors of DFZ.
"One of the key synergies for this alliance is the similar business models and corporate culture that both the organisations share. We are confident that this partnership will provide a sturdy platform for our expansion into South East Asia," Heinemann CEO Max Heinemann said.
The sale and purchase agreement signed in March 17 2016 includes the disposal of a 10% equity interest plus one share - comprising an aggregate 20.99 million shares - in DFZ to Heinemann Asia Pacific for a consideration of RM90.22 million.
Under the terms, Heinemann Asia Pacific are also entitled to purchase a second tranche of shares in DFZ via a call option 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 RM239.1 million.