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<Research>Citi Expects CTG DUTY-FREE (01880.HK) Acquisition of DFS Greater CN Biz to Consolidate Mkt Leadership
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CTG DUTY-FREE (01880.HK) announced the acquisition of DFS' Greater China retail business for no more than US$395 million, including nine travel retail stores in Hong Kong and Macau, as well as intangible assets, Citi Research issued a research report saying. Meanwhile, the Company will issue up to approx. 11.9675 million new H shares at a price of $77 per share to LVMH's Delphine SAS and Shoppers under the Miller Family, the co-founder of DFS, accounting for about 0.57% of its total share capital, raising net proceeds of no more than $924 million. The broker believed that this move is strategically significant for CTG DUTY-FREE, as it helps further consolidate its market leadership in the Greater China region, enhance retail capabilities, and promote China-chic brands globally, while having limited short-term financial impact. Therefore, Citi Research kept rating at Buy, with target prices of $100/ RMB106 for CTG DUTY-FREE's H-/ A-shares, anticipating strong duty-free sales in Hainan to be a short-term catalyst. AASTOCKS Financial News Website: www.aastocks.com |
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