Benettons expect binding offers for WDF by mid-March - sources (updated)

Hotel Shilla

03/03/2015 19:10

(Adds details from sources) 
    By Paola Arosio and Elisa Anzolin 
    MILAN, March 3 (Reuters) - Italy's Benetton family expects 
binding offers for its majority stake in the world's No. 2 duty 
free operator World Duty Free  WDF.MI  by mid-March, two sources 
close to the matter said on Tuesday. 
    The Benettons, whose business empire ranges from motorway 
concessions to clothing, are ready to sell their 50.1 percent 
stake in World Duty Free (WDF) for cash and a small stake in the 
duty free group. 
    The Italian travel retailer has a market share of around 8 
percent. 
    Switzerland's Dufry  DUFN.S , the sector leader, and South 
Korea's Lotte Shopping  023530.KS  have expressed their 
interest, two sources said. China's Sunrise Duty Free, which 
runs shops at Shanghai and Beijing airports, is also among the 
bidders, one of the sources said.  
     A potential bid from the Qatari sovereign fund could see 
Qatar Investment Authority teaming up with a private equity 
firm, according to the second source.  
    A third source said that South Korea's Hotel Shilla 
 008770.KS  was looking at the Italian group. 
    Last month, French media group Lagardere  LAGA.PA  said it 
was also interested but that WDF's shares were currently too 
expensive.  ID:nL5N0VK1YI  Its shares have risen about 30 
percent since the start of the year, boosted by acquisition 
expectations. 
    The eventual buyer would have to launch a bid for all 
outstanding shares after acquiring the 50.1 percent stake, in 
line with Italian market rules. 
    World Duty Free has a market value of 2.66 billion euros 
($2.98 billion) and net debt expected to reach 950 million euros 
by year-end, giving it an enterprise value of 3.61 billion 
euros. 
    Dufry and Qatar Investment Authority declined to comment. 
Sunrise was not immediately available to comment, while in the 
past Hotel Shilla has declined to comment on the issue. 
    Gilberto Benetton, who chairs the holding company through 
which the family holds their stake, said last week that WDF had 
been approached by several parties interested in the company but 
had not received any binding offer.  ID:nL5N0VY2BW  
    The Benetton family is willing to give up control and 
supports a merger as it will help the retailer cope with the 
rising costs of airport concessions and also give it more 
bargaining power in dealing with suppliers. 
     
 
 (Additional reporting by Francesca Landini in Milan and Pamela 
Barbaglia in London; editing by Susan Thomas) 
 ((francesca.landini@thomsonreuters.com; +39 02 66129437; 
Reuters Messaging: reutersitaly.thomsonreuters@reuters.net)) 
 
Keywords: WDF M&A/OFFERS