Alibaba, Richemont, Farfetch Link Up on Digitization of Luxury Industry, Chinese Market
November 06 2020 - 2:15AM
Dow Jones News
By Olivia Bugault
France's Compagnie Financiere Richemont SA, London-based
Farfetch Ltd. and Chinese giant Alibaba Group Holding Ltd. said
that they have formed a strategic partnership to speed up the
digitization of the luxury industry and improve access to the
Chinese market.
Under the partnership, Alibaba and Richemont will invest $250
million each in Farfetch China, and will therefore hold a combined
25% stake in a newly formed joint venture that will include
Farfetch's marketplace operations in China, they said late
Thursday. Alibaba and Richemont can decide to buy a further
combined 24% of Farfetch China three years after the joint
venture's formation, they said.
The investments and joint venture should be completed during the
course of the first half of next year.
"Alibaba and Richemont will invest $600 million ($300 million
each) in private convertible notes issued by Farfetch Limited,"
they added.
British-Portuguese online luxury fashion-retail platform
Farfetch will launch shopping channels on Alibaba's platforms. "The
new channels expand the reach of Farfetch's global luxury platform
to Alibaba's 757 million consumers, offering luxury brands a
multi-brand solution through a single integration with Farfetch,"
they said.
Additionally, French holding company Artemis will increase its
existing ownership in Farfetch through the purchase of about 1.9
million shares for a total gross proceeds of roughly $50
million.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
November 06, 2020 02:00 ET (07:00 GMT)
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