GENEVA (dpa-AFX) - Richemont (CFRUY.PK) announced it has entered into a conditional agreement to merge the operations of its subsidiary, The Net-A-Porter Group, with YOOX S.p.A. in an all-share transaction. Richemont will receive 50% of the share capital of the combined entity's listed parent company. Richemont has committed to a lock-up period of three years in respect of shares equivalent to 25% of the total share capital of the combined entity.
YOOX, a global Internet retailing partner for leading fashion brands, is incorporated in Italy and is listed on Borsa Italiana, the Italian stock exchange. The combined entity will be renamed, YOOX Net-A-Porter Group. Natalie Massenet, Founder and Executive Chairman of The Net-A-Porter Group, will serve as Executive Chairman and Federico Marchetti, Founder and CEO of YOOX Group, will be CEO of the combined entity.
The transaction will generate a one-off, non-cash, accounting gain in Richemont's financial statements for the year ending 31 March 2016 of approximately 317 million euros. The company said, excluding the one-off, non-cash accounting gain, the transaction is otherwise expected to be broadly earnings neutral in terms of Richemont's net income for the financial year ending 31 March 2016.
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