Farfetch Shares Up After Raising $250 Million From Tencent, Dragoneer
January 30 2020 - 10:08AM
Dow Jones News
By Michael Dabaie
Farfetch Ltd. (FTCH) shares were up 10% to $12.45 in early
trading after the company said it is raising $250 million from
Tencent Holdings Ltd. (0700.HK) and Dragoneer.
The technology platform for luxury fashion said it agreed to
issue and sell, via a private placement, convertible senior notes
in an aggregate principal amount of $250 million. Tencent agreed to
purchase $125 million of the notes, and San Francisco-based
investment firm Dragoneer agreed to purchase the remaining $125
million.
Farfetch said that as of December 31, its cash and cash
equivalents balance was about $320 million.
The additional capital will facilitate focus on growth plans,
including in the China market, and working toward operational
profitability.
Tencent's investment expands the relationship between the two
companies, which are working on luxury brands reaching Chinese
consumers through Tencent's WeChat platform.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
January 30, 2020 09:53 ET (14:53 GMT)
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