Coupang Shares Slip After Farfetch Deal
18 Décembre 2023 - 5:38PM
Dow Jones News
By Dean Seal
Shares of Coupang fell after the company said it would acquire
the online luxury company Farfetch Holdings.
The stock was down 3.7% at $16.39. Shares are up 11%
year-to-date.
The global retailer said the Farfetch acquisition will better
position it as a leader in the personal luxury goods space and give
Farfetch access to $500 million in capital.
To effect the transaction, Coupang and the investment firm
Greenoaks Capital Partners have established a limited partnership
that will acquire Farfetch's business and assets.
Farfetch's shares sank to an all-time low last month after the
luxury group Richemont said it had no plans to invest further in
the e-commerce company. The disclosure followed speculation that
Farfetch may be taken private by its founder and chief executive,
José Neves, with support from Richemont and e-commerce giant
Alibaba.
Farfetch disclosed around that same time that it won't stand by
its previous guidance, issue new guidance or publish third-quarter
results by a Nov. 29 deadline.
After Coupang said it would buy Farfetch on Monday, Richemont
said it won't complete a planned transaction with Farfetch
involving its Yoox Net-A-Porter platform, and expects to lose out
on convertible senior notes previously issued by Farfetch.
The deal is subject to an exclusivity period through April 30,
with Farfetch set to pay a $20 million termination fee to the
limited partnership if it enters into a competing transaction
before that time.
Coupang didn't provide a timeline for when it expects the deal
to close.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
December 18, 2023 11:23 ET (16:23 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Farfetch (NYSE:FTCH)
Graphique Historique de l'Action
De Oct 2024 à Nov 2024
Farfetch (NYSE:FTCH)
Graphique Historique de l'Action
De Nov 2023 à Nov 2024