// Richemont is selling its stake in struggling online fashion retailer Yoox Net-A-Porter (YNAP) to Farfetch and Alabbar
// Alabbar will take 3.2%, meaning that YNAP will be a neutral platform with no controlling shareholder – for now
Swiss luxury group Richemont has confirmed it will be selling its majority stake (47.5%) of Yoox Net-a-Porter (YNAP) to Farfetch, adding that Emirati businessman Mohamed Alabbar would take 3.2%.
The transaction will see Farfetch pay Richemont between 53 to 58.5 million Farfetch shares, as well as $250 million worth of shares five years after the deal is completed.
Mohamed Alabbar’s smaller stake means that YNAP will be a neutral platform with no controlling shareholder however that status may not last, as Farfetch will have the option to acquire the remainder of YNAP.
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Back in 2018, Richemont acquired a 95% controlling stake on the loss making luxury retailer and now, with less than 50% stake, it will allow the luxury company to de-consolidate YNAP.
As part of the deal, YNAP will adopt Farfetch’s technology platform, Farfetch Platform Solutions, to progress its digital strategy, adding that the move will “significantly advance” the roll-out of YNAP’s marketplace offering, as Farfetch’s platform is already connected with the inventory of many of its luxury brand partners.
Richemont said it will use Farfetch’s technology platform to advance the delivery of its omnichannel strategies for its brands, which will also join the Farfetch Marketplace.
Richemont chairman Johann Rupert said: “Today’s announcement is a significant step towards the realisation of a dream I first voiced in 2015 of building an independent, neutral online platform for the luxury industry that would be highly attractive to both luxury brands and their discerning clientele.
“We knew back then that if we wished to control our own destiny and protect the uniqueness of the luxury industry as it was digitalised, we would need to collaborate as the task was too big to undertake on our own.”
Rupert added: “Farfetch’s sophisticated technology will enable Richemont Maisons to benefit from the best route to market and realise their Luxury New Retail vision, while implementing a hybrid model at YNAP will greatly enhance its prospects.”
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