Eurazeo exits Farfetch with stake sale
As news continues to swirl around Alibaba’s interest in Farfetch, on Tuesday it emerged that investment company Eurazeo has completed the sale in the market in recent days of all its shares in the luxury online marketplace.
The disposal generated net proceeds of €90.4 million, which saw the firm making a big profit on its original investment.
Eurazeo had been a shareholder in Farfetch since May 2016 and said that since then it had “accompanied the company's growth, particularly by helping it develop its business among luxury goods brands and expand its geographic footprint in China and other countries”.
Yann du Rusquec, Partner at Eurazeo Growth, said it was “especially proud to have supported Farfetch in its development strategy since 2016. We wish José Neves and his teams every success with their future growth plans”.
The news came a day after a report said Alibaba Group Holding Ltd is in advanced talks to invest nearly $300 million in Farfetch, a story that drove the Farfetch share price up around 16%.
It also said they’re in talks to create a Chinese joint venture and that Net-A-Porter owner Richemont, which has already teamed up with Alibaba on other projects, is considering an investment as well.
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