Richemont: denies rumors about Farfetch

(CercleFinance.com) - Richemont said on Wednesday that rumours claiming that it intends to invest in Farfetch, or to finance the online luxury retailer, were unfounded.


Following reports in the press, the Swiss group reiterates that it has no financial obligations towards Farfetch and notes that it has no plans to invest in or lend money to Farfetch.

These statements come as Farfetch jumped almost 23% on the New York Stock Exchange yesterday amid rumours of a delisting, a project allegedly backed by Richemont and China's Alibaba.

Farfetch did not comment on the news, but the company announced that it would not publish its Q3 results, as planned, today, adding that it intended to provide an update on the situation "in due course".

Meanwhile, Richemont says that it is closely monitoring developments in the case, which could lead it to review its options linked to the transaction concluded this summer with Farfetch.

For the record, the Swiss giant sold 47.5% of its Yoox Net-a-Porter (YNAP) subsidiary to the company in exchange for an equity stake.

The possible delisting of Farfetch complicates the completion of the transaction, RBC analysts commented regarding the matter.

The Canadian broker says that Farfetch could just as easily (1) oppose completion of the transaction as it stands, (2) ask to revise the terms, or (3) complete it as agreed.

Listed on the Zurich Stock Exchange, Richemont's share price nonetheless rose by 1% on Wednesday morning, making it the second-biggest gainer on the SMI index.

In a study, Oddo BHF's teams tempered the impact of a possible failure of the YNAP operation, saying that it would not be ideal, but it would not radically alter analysts' opinion of Richemont.


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