Richemont offers €2.8 billion for Yoox Net-A-Porter

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Richemont offers €2.8 billion for Yoox Net-A-Porter

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Published Date: 2018-01-23 | Source: Stephen Gunnion | Author: Stephen Gunnion

Richemont offers €2.8 billion for Yoox Net-A-Porter

The luxury goods group says digital channels are becoming critically important in meeting luxury consumers' needs

Richemont plans to make an offer to minority shareholders in Yoox Net-A-Porter (YNAP) as it grows its online presence. The luxury goods group says it will launch a voluntary public tender offer to acquire the 51% stake it doesn't already own in YNAP. It's offering investors €38 a share for their stock, a 26% premium to YNAP's closing price on the Milan stock exchange on Friday. YNAP CEO Federico Marchetti, who holds 4% of the group, has already given an irrevocable undertaking to back the offer.

YNAP has also waived the standstill obligation included in the shareholder agreement entered into two years ago with the merger of Yoox and Net-A-Porter. The standstill obligation prevented Richemont and all its affiliates from buying any further ordinary shares of YNAP save in certain circumstances.

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Richmond says it has participated in the growth of Net-A-Porter since its infancy and in the creation of YNAP, which it describes as the world's leading online luxury retailer. It says buying out minorities will help strengthen its position in luxury e-commerce, grow the business in existing and new geographies and increase product availability and range. YNAP would continue to operate as a separate business, ensuring it remains a neutral and highly-attractive platform for third-party luxury brands, it said.

Its shares fell 1.9% to R111.85 yesterday.



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