Farfetch completes sale to Coupang
Despite shareholder resistance, the luxury e-commerce business has finalised the sale for $500m (£392m)
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Farfetch has completed the sale of its business to the South Korea marketplace company Coupang for $500m (£392m).
With the original agreement, which was announced on 18 December, Farfetch agreed that it had until 30 April to explore other creditors for the sale but now the deal has been finalised.
However, last week Forbes reported that a group of investors called the 2027 Ad Hoc Group tried to push back the business sale to Coupang.
The group, which represents over 50% of institutional investors, told Forbes: “The proposed sale to Coupang is wiping millions of dollars of debt to zero and also harming employees and other investors.
“Our clients are highly concerned about the reasons why this distress sale has come about, whether the business was even marketed to others and why the terms of the proposed sale to Coupang are so value-destructive.”
In an official statement, Coupang said: “By providing access to $500m in capital, this acquisition allows Farfetch to continue delivering exceptional services for its brand and boutique partners, and to more than four million customers around the world. By leveraging Coupang’s operational excellence and innovative logistics, Farfetch is now well-positioned to pursue steady and thoughtful growth.”
Farfetch has not commented on the sale.
