Coupang, Inc. has announced that it has completed the acquisition of the assets of global online luxury company Farfetch Holdings plc. By providing access to US$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 worldwide. By leveraging Coupang’s operational excellence and innovative logistics, Farfetch is now well-positioned to pursue steady and thoughtful growth.
Meanwhile, the transaction is not necessarily being well received. The 2027 Ad Hoc Group (the Group), holding over 50 per cent of Farfetch’s 3.75 per cent Convertible Senior Notes due 2027 and formed to explore options over the proposed acquisition of Farfetch by Coupang, is being questioned.
In a statement the Group said that “it believes the expedited sale of Farfetch to Coupang is yet another example of serious failings at Farfetch, including a lack of transparency and corporate governance at Farfetch. The unjustified speed of the sale process and bridge loan terms have precluded any proper marketing of Farfetch’s assets to other interested parties and fail to maximise asset value for stakeholders. The rapid and unexplained deterioration in Farfetch’s financial position, the significantly below market value offer for Farfetch by Coupang and the terms of the Transaction Support Agreement ‘poison pill’, which has effectively prevented any other interested parties from entering the bidding, all raise significant concerns regarding the process. The Group is evaluating all options for recovering value, including litigation.”
A spokesperson for the Ad Hoc Group commented “Farfetch has taken a consensual outcome off the table which would have been in the interests of its investors, shareholders and employees. This is another example of why we are so concerned about Farfetch’s actions. We maintain our position and will evaluate all possible litigation steps.”
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