Richemont announced on 5 October 2015 that the merger of its subsidiary, the Net-A-Porter Group with YOOX S.p.A. had been completed. As a result of the all-share transaction, Richemont received 65,599,597 shares in the YOOX Net-A-Porter Group, which represent 50 percent of the share capital of parent company of the combined entity on a fully diluted basis.
To preserve the independence of the YOOX Net-A-Porter Group, Richemont’s voting rights are limited to 25 percent. Two representatives from Richemont will serve on the board of the combined entity’s listed parent company.Richemont will equity account its investment in YOOX Net-A-Porter Group.
The all-share transaction will generate a one-off, non-cash accounting gain in Richemont’s financial statements for the full-year ending 31 March 2016. This gain will be reported in ‘profit from discontinued operations’. Based on YOOX share price of €28.06 on 2 October 2015 closing, the pre-tax and post-tax accounting gain is estimated to be between €610 million and €670 million, according to the group’s press release.
← Back