(CercleFinance.com) – Richemont fell on the Zurich Stock Exchange on Monday after announcing the end of its agreement with Farfetch relating to the sale of Yoox Net-A-Porter (YNAP), its fashion sales subsidiary in deficit line.
The luxury group’s stock lost 1.8% at the end of the session, showing one of the biggest falls in the SMI index.
In a press release, Richemont, Farfetch and Symphony Global, an investment vehicle belonging to Emirati businessman Mohamed Alabbar, indicate that they have terminated their agreements concluded last year.
The agreement notably provided for the sale of a majority stake in YNAP to Farfetch and Symphony Global, as well as the adoption of Farfecth’s technological platforms by most of the Richemont and YNAP houses.
But the operation seemed seriously in doubt since the appearance last month of rumors of a possible delisting of Farfetch.
In its press release, Richemont also considers it reasonable to estimate that its investment of $300 million in convertible bonds issued by Farfetch as part of their partnership will not be repaid.
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