In January 2018, Richemont announced the acquisition of Yoox Net-a-porter (YNAP), then the only online pure-player in the Swiss luxury group’s brand portfolio. Richemont has today changed its tune. Via a press release, the group announced that it was selling part of its stake in YNAP to Farfetch. Initially, Farfetch will take a 47.5% stake, while Emirati businessman Mohamed Alabbar will take a 3.2% stake.
Last November, Richemont was already in advanced discussions with its British counterpart Farfetch in order to develop its economic model in digital. The goal was to make YNAP a neutral platform that is not controlled by a single shareholder. The new agreement embodies this goal and provides for Richemont and YNAP to each adopt solutions from the Farfetch platform. Richemont estimates that the transaction will lead to a depreciation of its value to the tune of 2.7 billion euros.
“We are excited to acquire 47.5% of YNAP and partner with Richemont to transform YNAP into a hybrid business model […] This investment and the work we will do with Farfetch Platform Solutions for YNAP will pave the way for a potential acquisition by Farfetch, which would create a complementary portfolio of iconic luxury destinations…” says José Neves, Founder, President and CEO of Farfetch .
A new majority stake in Farfetch is therefore planned, clarifies the specialized site Vogue Business. Who adds that this operation consolidates the domination of Farfetch on the market, by taking the potential control of one of its main rivals.
