E-commerce operator Farfetch and Symphony Global, the investment vehicle of Emirati real estate mogul Mohamed Alabbar, will acquire a 47.5 and 3.2 percent percent stake in Yoox Net-a-Porter (YNAP) respectively from Richemont, the companies said in a statement.
The deal leaves Yoox-Net a-Porter without a controlling shareholder, and paves the way for Farfetch to potentially acquire the remaining YNAP shares, the companies said in a press statement.
“This investment and work we will do with Farfetch Platform Solutions for YNAP will pave the way to a potential acquisition by Farfetch, which would create a complementary portfolio of iconic luxury destinations, appealing to different demographics, price points and regions,” Farfetch CEO Jose Neves said in a statement.
As part of the deal, Richemont’s brands will also adopt Farfetch’s technology to power their digital activities, according to the statement.
Bringing its stake in YNAP below 50 percent will allow Richemont to de-consolidate the loss-making e-tailer in its reporting. The Swiss group controlled by South African billionaire Johann Rupert has faced mounting pressure to report progress on selling or turning around the unit, which fell behind rivals during the pandemic.
Stay tuned for BoF updates to this developing story.