YNAP share price soars after Richemont takeover bid
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

YNAP share price soars after Richemont takeover bid

Online fashion retailer Yoox-Net-A-Porter (YNAP) has seen its share price shoot through the roof this week, as luxury titan Richemont made an offer to purchase “at least” 41% of the company. Richemont, best known as the owner of Cartier, Van Cleef & Arpels, and a host of other high-end brands, already owns 49% of YNAP. Now, it’s making a play for three quarters of the voting rights that it doesn’t already have. Richemont is not messing around: the company has offered to pay $38 per share, representing a premium of 26% against Friday’s close. Unsurprisingly, investors jumped at the news.

YNAP’s share price soared after the news broke – it’s now up by 29% so far this year!

graph 0124 richemont

SOURCE: Yahoo Finance

Federico Marchetti, YNAP’s chief executive and the company’s founder, has accepted Richemont’s offer for his 4% stake. He will continue to lead the business, which will remain separate from Richemont’s other ventures. The Swiss giant has also suggested that it will take Richemont private – a move that some analysts think is for the best. Mauro Baragiola, a Citi analyst, counts himself amongst them. He told The Financial Times that: “YNAP might benefit from being a private company not exposed to the dynamics of quarterly reports.

Speaking to the press, Richemont’s chairman, Johann Rupert, made the following statement: “We are very pleased with the results achieved by Yoox Net-a-Porter group’s management team, led by Federico Marchetti, and we intend to support them going forward to execute their strategy and further accelerate the growth of the business.

Disclosure

Dominion holds both YNAP and Richemont in its Global Trends Luxury Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.