COMPANIES: Richemont offloads Yoox Net-a-Porter, takes $2.7bn non-cash write-down

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 84%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Less than five years after forking out $3.3-billion (R56-billion) for online luxury retailer Yoox Net-a-Porter, Richemont is offloading it and absorbing a $2.7-billion non-cash write-down.

A non-cash write-down refers to a transaction that does not involve a cash payment. It can represent meaningful changes to a company’s financial standing, weighing on earnings without affecting short-term capital in any way.

Johann Rupert, chair of Richemont, hailed the transaction as a “significant step” towards the realisation of a dream he first voiced in 2015 – a dream of an “independent, neutral, online platform for the luxury industry that would be highly attractive to both luxury brands and their discerning clientele”.

Upon completion of the sale of 47.5% of Yoox Net-a-Porter’s share capital to Farfetch, Richemont will receive 53 million to 58.5 million Farfetch Class-A ordinary shares, which will represent 10%-11% of the fully diluted share capital of Farfetch and 12%-13% of the issued share capital. Richemont will also receive $250-million, which will be settled in Farfetch Class-A ordinary shares on the fifth anniversary of completion of the initial stage of the transaction.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

The land& economy looter still raking it🤔🤦🏾‍♂️🙆🏾‍♂️ I guess the real state capture is far from over. The new system/new form of apartheid is far from over.🤦🏾‍♂️🙆🏾‍♂️

I was referred to this platform by a friend I thought it was a scam company but I was moved to give a try and here I earned I just wanted to share this to people thank you so much ponomereko_62

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in CA

Canada Canada Latest News, Canada Canada Headlines