GENEVA (dpa-AFX) - Switzerland-based luxury goods holding company Compagnie Financiere Richemont AG (CFRUY.PK) on Wednesday said luxury fashion retailer Farfetch, and Symphony Global, owned by Mohamed Alabbar, have decided to pick up 47.5% and 3.2% stake, respectively, in Richemont's ecommerce operation Yoox Net-a-Porter (YNAP). Towards this, Richemont will record writedown to the tune of 2.7 billion euros.
Upon completion of the deal, Richemont will receive 53 million-58.5 million Farfetch Class A ordinary shares, and after five years another $250 million worth shares.
The transaction will make YNAP an impartial platform with no controlling shareholder, Richemont said.
Richemont and FARFETCH will have have put and call options, respectively, for Farfetch to amass the remainder of YNAP, subject to certain conditions.
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