November 06, 2020
& Watkins is advising Farfetch on its global strategic partnership with
Alibaba Group and Richemont, to provide luxury brands with enhanced access to
the China market and accelerating the digitization of the global luxury
Alibaba and Richemont will invest US$600
million (US$300 million each) in private convertible notes issued by Farfetch
Limited. Alibaba and Richemont will also invest US$500 million (US$250 million
each) in Farfetch China, a new joint venture which will include Farfetch’s
marketplace operations in the China region. In addition, Alibaba and Richemont
have an option to purchase a further combined 24% of Farfetch China after the
third year of the joint venture’s formation. Alibaba and Richemont will also
explore additional opportunities to work closely with Farfetch to provide
services to luxury brands. The investments by Alibaba and Richemont in Farfetch
China and the establishment of the joint venture is expected to be completed
during the first half of calendar year 2021, subject to the satisfaction of
Separately, Artemis has also agreed to increase
its existing investment in Farfetch with a $50 million purchase of Farfetch
Class A shares.
Farfetch and Alibaba have also formed a
steering group to further enhance the visionary concept, Luxury New Retail,
aimed at leading the digitization of the global luxury retail industry.
The Latham team is led by London corporate partners Joshua Kiernan, Ed Barnett, and Deborah Kirk, and New York corporate partners Ian Schuman, Adam Gelardi, and Reza Mojtabaee-Zamani, with counsel Ellen Smiley and associates Hector Sants, Elva Cullen, Polina Tulupova, and Jennifer Gascoyne.