CFRUY Compagnie Financiere Richemont (PK)

By Joshua Kirby

Compagnie Financiere Richemont SA said Wednesday that it has agreed to sell a majority stake in e-commerce business Yoox-Net-A-Porter to Farfetch Inc. and Dubai-based investor Mohamed Alabbar, securing a deal that the company first flagged at the end of last year.

Farfetch will acquire a 47.5% stake in YNAP in return for 53 million-58.5 million of its own shares, or around 12%-13% of its issued share capital, the Swiss luxury-goods group said. Richemont and YNAP will also use Farfetch's technology platform as a sales channel under the deal, the company added.

Symphony Global, an investment vehicle controlled by Mr. Alabbar, will meanwhile acquire a 3.2% stake in return for the shares it owns in a joint venture with YNAP in the Gulf Cooperation Council region, Richemont said. This will give YNAP full ownership of its business in the region, the company said.

From Farfetch, Richemont will receive a further $250 million on the fifth anniversary of the completion of the initial transaction, also payable in shares in the New York-listed luxury e-commerce company.

Under the deal, which is subject to conditions including antitrust approvals and which is expected to be completed by the end of next year, Farfetch has an option to acquire all remaining shares in YNAP between three to five years from that point, Richemont said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

August 24, 2022 01:52 ET (05:52 GMT)

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