The luxury goods group Richemont has found a partner to set up a luxury goods platform for the time being. Richemont will sell the majority of the online trading platform Yoox-Net-a-Porter (YNAP). However, this results in billions of euros being written off in the books.
According to the agreements reached, British online retailer Farfetch and entrepreneur Mohamed Alabbar will take a 47.5 percent and 3.2 percent stake in YNAP, respectively, Richemont announced on Wednesday. Richemont and Farfetch have put and call options on the remaining interest, subject to certain conditions.
billion write-off
The transaction would result in impairments for Richemont (Cartier, Montblanc, A. Lange & Söhne) currently estimated at 2.7 billion euros, according to the statement on Wednesday. However, that amount still depends on several variables, most notably the Farfetch exchange rate and the US Dollar/EUR exchange rate.
The majority stake in YNAP is to be sold within the next twelve months. The transaction is still subject to antitrust reviews. (FashionUnited/dpa)