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

• Farfetch Ltd (NYSE: 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.

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