Louis Vuitton Moët Hennessy (LVMH) has reached an agreement to sell the Greater China retail business of DFS, its travel retail subsidiary, to CTG Duty Free for an expected cash consideration of no more than USD395 million. Freshfields, Ruimin Law Firm and King & Wood Mallesons (KWM) advised on the transaction.
Under the agreement, CTG Duty Free will acquire DFS’s retail stores in Hong Kong and Macau, as well as its intangible assets in the Greater China region, including the exclusive rights to use DFS-owned brands and IP in Greater China. The consideration will be paid in cash and the transaction is expected to be completed within around two months.
In addition, LVMH and the family of Robert Miller, the co-founder and shareholder of DFS, will participate in CTG Duty Free’s H-share placement, subscribing for shares equivalent to a portion of the sale consideration. The share subscription will be finalised following completion of the acquisition.
LVMH and CTG Duty Free have also signed a memorandum of understanding where they aim to establish co-operation in the retail sector to align their strategies. The co-operation will cover areas such as product sales, store establishment, brand promotion, cultural communication, travel services and customer experience.
Freshfields and Ruimin, its China joint operation firm, advised LVMH and DFS on Hong Kong and PRC law, respectively.
Partner Sarah Su led the Freshfields team, with IP and data privacy advice provided by partner Richard Bird and counsel Cédric Lindenmann. Employment advice was provided by counsel Stephanie Chiu, partner Alastair Mordaunt dealt with antitrust matters, counsel Justin Chow handled regulatory issues, tax advice was managed by partners Peter Clements and Vincent Daniel-Mayeur, and partner Liu Xin guided on sanctions.
The Ruimin team was led by partners Hazel Yin, Silvia Gong and Murphy Li.
KWM served as legal counsel for CTG Duty Free.
CTG Duty Free is a leading global duty-free operator listed on the SSE and HKEX. Its business spans duty-free retail, taxable retail and the development of integrated tourism retail complexes. The company is 50.3% owned by China Tourism Group, a state-owned enterprise wholly owned by the State-owned Assets Supervision and Administration Commission of the State Council.
Founded in 1960, DFS is a globally recognised luxury travel retailer with a store network spanning major airports and downtown locations worldwide. Its principal shareholder is LVMH, while its co-founder Miller holds a minority stake.
