Farfetch Ltd FTCH shares are trading higher Wednesday after the company announced that it acquired a stake in online fashion retailer YOOX Net-A-Porter (YNAP).
Farfetch has acquired a 47.5% stake in YNAP. Symphony Global, one of the investment vehicles of Mohamed Alabbar, has acquired a 3.2% stake in the company. The company also reached an agreement with Richemont in which it will adopt FARFETCH platform solutions. Richemont and YNAP will leverage Farfetch's technology platform to advance their luxury new retail program.
"This significant partnership unequivocally establishes FARFETCH as a pre-eminent global platform for luxury," said José Neves, founder, chairman and CEO of Farfetch.
The initial stage of the transaction is expected to be completed before the end of 2023. The potential second and final stage of the transaction provides for Farfetch to increase its ownership of YNAP to 100% through a put and call option mechanism.
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FTCH Price Action: Farfetch has a 52-week high of $35.26 and a 52-week low of $6.52.
The stock was up 20.4% at $9.44 at press time, according to Benzinga Pro.
Photo: LUM3N from Pixabay.
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