Connect with us

Hi, what are you looking for?

Editor’s Pick

Richemont in talks to sell controlling stake in Net-a-Porter

The Swiss luxury goods group behind Cartier and Van Cleef & Arpels is in talks over a deal to cede majority control of its lossmaking Yoox Net-a-Porter ecommerce business.

Richemont said that it was in “advanced discussions” over the sale of a minority stake in the struggling clothing and accessories business to the online retailer Farfetch in a move designed to appease disgruntled shareholders.

The company, which also owns the Piaget brand, said that it would invite other companies to work alongside Farfetch in trying to turn Net-a-Porter into a neutral industry-wide retail platform with no ultimate controlling shareholder.

Shares in Richemont, which is controlled by the South African billionaire Johann Rupert, rose by SwFr12.95 to SwFr133.95 in morning trading, a rise of 10.7 per cent, on the news of the possible solution to Net-a-Porter’s woes as well as better-than-expected first-half results. “It’s an early Christmas present for Richemont shareholders,” Jon Cox, an analyst at Kepler Cheuvreux, said.

Richemont cautioned, however, that the price and terms of any transaction had yet to be resolved and it remains unclear whether its plans would involve spinning off Net-a-Porter into a separate company.

The Swiss luxury goods group has made significant investments in Net-a-Porter in an attempt to emulate Farfetch’s asset-light model but its persistent losses have prompted talk of a sale. It emerged this week that Third Point, an activist hedge fund, had built a stake in Richemont to put pressure on management.

Artisan Partners, an existing Richemont shareholder, backed Third Point’s contention that the company was undervalued, mainly as a result of Net-a-Porter’s poor performance.

Rupert, who holds a 9 per cent stake in Richemont but a majority of its voting rights, claimed that its actions were “not in response to activist pressure at all”. He also reiterated that it was not interested in a merger with the rival luxury goods group Kering and insisted that its rejection of a deal was “a binding statement” and added: “We believe in our own business.”

Net-a-Porter has failed to cash in on the surge in online shopping during the pandemic and revenues in the six months to the end of September fell by 15 per cent to €934 million. Losses were flat at €141 million.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



SM Investments Corp. announces annual stockholders’ meeting on April 26 – BusinessWorld Online ...


AyalaLand Logistics Holdings Corp. to conduct annual meeting of stockholders virtually on April 19 – BusinessWorld Online ...


Please see below for the Notice of the Annual Stockholders’ Meeting of Premium Leisure Corp. TO ALL STOCKHOLDERS: The Annual Stockholders’ Meeting of Premium...


Please see below for the Notice of the Annual Shareholders’ Meeting of Belle Corporation. To all Shareholders: The annual meeting of the shareholders of...


PHILIPPINE STAR/MICHAEL VARCAS By Keisha B. Ta-asan, Reporter THE BANGKO Sentral ng Pilipinas (BSP) is likely to pause its current tightening cycle in May,...


BW FILE PHOTO THE NATIONAL Government’s (NG) gross borrowings declined by 16.5% as of end-January, the Bureau of the Treasury (BTr) said. Based on...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.