Malaysia’s Atlan Holdings has confirmed that it has entered into a sale and purchase agreement with Heinemann Asia Pacific to sell ‘up to approximately’ 25% of DFZ Capital Berhad (DFZ), the wholly-owned subsidiary of Duty Free International (DFIL) – itself a 79.47% owned subsidiary of Atlan (AHL).

 

DFZ is the leading duty free retailer in Malaysia, operating contracts under the ZON trading name at Kuala Lumpur International Airport and various shops at several other locations, including Padang Besar, Langkawi, Bukit Kayu Hitam and Johor Bahru.

 

Atlan Holdings has set its price for the first 10% share in the company at the equivalent of €19.7m ($22.2m) and Heinemann Asia Pacific (HAP) has agreed a cash sale, according to Atlan’s filing with the Bursa Malaysia and Singapore Exchange Securities yesterday.

 

 

Over the next two and half years, Heinemann has further call options to increase its share to 25% and Atlan says if this is exercised, then the total transaction will amount to €52.21m ($59m), effectively valuing the whole company at around $260m.

 

In a statement, Atlan/Duty Free International said: “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.

 

ENHANCED EXPERIENCE

“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.”

 

In addition to board seats at DFZ Capital Berhad, Heinemann Asia Pacific adds that it will also be involved in day-to-day operations and overall business decision making when the transaction is completed which is expected by June 2016.

 

Commenting, 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 further growth together in Malaysia.”