Richemont sells 100% of Ynap to Mytheresa
The Swiss group will receive a 33 per cent stake in the capital of the German acquiring company
3' min read
3' min read
Richemont exits the Ynap investment. But not entirely. The Swiss luxury group has reached an agreement with luxury clothing sales platform Mytheresa to sell 100 per cent of Yoox Net-a-Porter. However, the transaction, which aims to create a leading global multi-brand digital luxury group, will not be paid for in cash but in newly issued shares in the German group. Following the news, Richemont's share price in Zurich rose by 2% yesterday. But if the Swiss group benefited, Mytheresa had an extraordinary exploit, rising more than 60%.
Transaction details
.In detail, the agreement provides for Richemont to receive a 33% stake in the share capital of Mytheresa (considering diluted capital). At the time of the sale Ynap has a cash position of EUR 555 million and no financial debt. In addition, Richemont will provide a six-year EUR 100 million revolving credit line to finance Ynap's general corporate needs, including working capital.
In terms of governance, the Swiss group is granted the right to appoint one member and one 'observer' to Mytheresa's supervisory board after the deal closes, which is expected in the first half of the year 2025. The acquisition is, however, subject to antitrust approvals, while it is 'not subject to or conditional on the approval of Richemont or Mytheresa shareholders'.
A divestment announced
.Disengagement from Ynap had already been attempted by Richemont in recent years. The sale to Farfetch and Alabbar, for example, had faded at the end of 2023, not least because Farfetch itself was experiencing such a complex moment that earlier this year, in a rescue operation, it was taken over by the Korean company Coupang for around USD 500 million. An affair that is not yet over since, according to analysts, Farfect is weighing down the results of the Korean group, which in turn is trying to run for cover by closing down some of the acquired company's activities such as Farfetch platform solutions.
Not an easy time, therefore, for the luxury ecommerce company, although there had been no lack of interest in Ynap from private equity firms such as Bain Capital and Permira, which, however, at least according to rumours, have backed off, frightened by the company's growing losses and falling sales.
