News

Luxury Group Richemont Withdraws Planned Transaction with Farfetch

1 Mins read

Luxury group Richemont has announced that it will not be proceeding with a planned transaction involving its Yoox Net-A-Porter platform and Farfetch. As a result, the company expects to incur losses on convertible senior notes that were previously issued by Farfetch.

This decision comes in light of the recent news that Coupang, a South Korean e-commerce company, is acquiring Farfetch’s business and assets. Last year, Richemont and Farfetch reached an agreement in which Richemont would divest nearly half of its e-commerce business, YNAP, in exchange for a minority stake in Farfetch and access to its platforms.

Richemont confirmed on Monday that it does not anticipate repayment of the $300 million convertible senior notes issued by Farfetch to the company in November 2020. As of November 30, 2023, the carrying value of these notes in Richemont’s accounts stood at EUR218 million.

Despite this setback, both Richemont and YNAP will continue to operate independently on their respective platforms. The company stated that it will re-evaluate its options for the sale of its e-commerce business.

Related posts
News

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…
News

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…
News

DaVita Expands in Latin America

1 Mins read
Shares of DaVita reached record levels as the kidney care services company announced its significant expansion into Latin America through a $300…

Leave a Reply

Your email address will not be published. Required fields are marked *

− 2 = 4