Mohamed Alabbar to acquire stake in Yoox Net-a-Porter from Richemont

Emirati businessman Mohamed Alabbar and online luxury fashion retailer Farfetch will acquire a total of more than 50 per cent stake in e-commerce player Yoox Net-a-Porter (YNAP) from Swiss luxury group Richemont.

Alabbar’s investment vehicle, Symphony Global will acquire a 3.2 per cent stake of YNAP’s share capital, while Farfetch will take 47.5 per cent. YNAP Group had partnered with Symphony Global in 2016 with Alabbar owning a 40 per cent stake in the venture.

Richemont has chosen Farfetch as its technology partner to support the implementation of the ‘Luxury New Retail vision’ of its Maisons and to accelerate the marketplace offering at YNAP.

As a result of the acquisition, YNAP will become a neutral distribution platform, not controlled by any one shareholder. The move paves the way for Farfetch to dominate luxury e-commerce, powering YNAP and Richemont brands with its digital platform and broadening its customer base.

“The announcement is a significant step towards the realisation of a dream I first voiced in 2015 of building an independent, neutral online platform for the luxury industry that would be highly attractive to both luxury brands and their discerning clientele. We knew back then that if we wished to control our own destiny and protect the uniqueness of the luxury industry as it was digitalised, we would need to collaborate as the task was too big to undertake on our own,”said Johann Rupert, chairman of Richemont.

Alabbar, who is also the founder of Emaar Properties, will acquire the 3.2 per cent interest in YNAP in exchange for its shares in the joint venture with YNAP in the GCC region.

With the deal, YNAP operations will leverage Farfetch’s technology to advance the rollout of YNAP’s marketplace offering. YNAP will also be able to shift towards a hybrid business model which will be more ‘asset-light’.

“YNAP is one of the most coveted global luxury shopping destinations and the partnership with Farfetch, by continuing to develop YNAP’s marketplace business, will further enhance the experience for its brand partners and discerning clientele,” said Mohamed Alabbar, founder and owner of Symphony Global.

In other retail news, recently Emaar properties announced to sell the online fashion platform Namshi to e-commerce company Noon for $335.2m.

Read: Dubai’s Emaar to sell online platform Namshi to Noon