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