Elliott International and the Liverpool Limited Partnership have become an investor in Dufry AG after buying 3m shares worth 5.57% of the voting rights.

 

These were acquired in a seemingly complex but successful smash and grab raid on the HNA Group’s previous 20.9% holding.

 

IS THERE ANOTHER MOVE…?

This is being interpreted as a potential precursor to possible further investment by Elliott in Dufry in future, although this is no more than speculation within financial media at present – essentially the normally reliable Financial Times and Reuters News Agency.

 

Strangely enough, a run on Dufry’s shares was also predicted more widely when the HNA Group began building its stake in Dufry earlier this year, although this wasn’t to be, as it all slowed to a jog as HNA’s shopping spree finally halted at just over 20%.

 

HNA has since been very quiet, leading to suggestions in financial circles that it may need to rebalance its investment portfolio if there are demands on its funds elsewhere.

 

As such, the HNA Group’s interest in Dufry also appears to be ‘parked’ at present, following the Cayman Islands’ based Elliott International ’raid’.

 

COMPLEX SHARE TRANSACTION

This apparently involved grabbing this minor portion of HNA Group’s Dufry shareholding in a seemingly complex manoeuvre. This was achieved by approaching a third-party bank which was holding them in what is apparently known in ‘financial parlance’ as an ‘equity collar’ facility. This was then converted into a full-sale permanent transaction.

 

Yet more financial press speculation has since suggested that HNA might be considering offloading some of its remaining Dufry shares if it needs to service debts elsewhere. But once again, it should be emphasised that this is still only speculation, since none of the players are commenting at present.

 

Elliott International, L.P. George Town, Cayman Islands, British West indies is linked with the Liverpool Limited Partnership and was originally founded by Paul E. Singer, the US hedge-fund billionaire. The Elliott Management Corporation is ‘estimated’ to have a net worth of $2.6bn.