Farfetch Pops On Acquiring 47% Stake In Luxury And Fashion Retailer YNAP

Farfetch Ltd FTCH and business tycoon Mohamed Alabbar's Symphony Global have acquired 47.5% and 3.2% stakes, respectively, in online luxury and fashion retailer YOOX NET-A-PORTER (YNAP). The transaction results in YNAP as a neutral platform with no controlling shareholder.
YNAP and its parent, Richemont, will adopt Farfetch's platform solutions to help digitalize the luxury industry.
The company's platform solutions will advance the delivery of the omnichannel strategy of Richemont's Maisons.
Upon selling 47.5% of YNAP's share capital to Farfetch, Richemont will receive 53.0-58.5 million of Farfetch's Class A ordinary shares, representing 10%-11% of fully diluted and 12-13% of the issued share capital.
Richemont and Farfetch will have put and call options, respectively, for Farfetch to acquire the remainder of YNAP, subject to certain conditions.
Richemont will also receive $250 million on the fifth anniversary of completing the initial stage of the transaction.
Farfetch held $937.9 million in cash and equivalents as of March 31, 2022.
Price Action: FTCH shares are trading higher by 13.90% at $8.93 in premarket on the last check Wednesday.