Mohamed Alabbar acknowledged as “driving force behind Dubai’s economic growth”
Yoox Net-A-Porter Group has sold a €100m stake to Middle Eastern powerhouse Alabbar Enterprises.
The capital increase will be entirely subscribed for by Alabbar Enterprises, which is controlled by Mohamed Alabbar – an entrepreneur that is said to be “widely acknowledged as the driving force behind Dubai’s economic growth”.
The increase will be executed through the issuance of 3,571,428 ordinary shares at a price of €28 per share. After the deal closes, Alabbar will own a 4% stake of the Yoox Net-A-Porter Group.
Besides Alabbar Enterprises, which operates and invests in businesses in the Middle East, South East Asia and Africa, Alabbar is the Founder and Chairman of Emaar Properties and Emaar Malls Group, whose flagship asset is The Dubai Mall.
Alabbar said: “I am pleased to have been provided with the opportunity to invest in and support Yoox Net-A-Porter, the leader in online luxury retail. With an unrivalled product offering and superior customer experience, I look forward to collaborating with the management team and board, as the group further expands within the region.”
Through the investment, Yoox Net-A-Porter Group plans to pursue new growth opportunities through localisation in key high-potential regions, invest in the development of a common omnichannel enabled techno-logistics platform across all regions and stores, and retain maximum balance sheet flexibility.
Federico Marchetti, CEO of Yoox Net-A-Porter Group, said: “I sincerely admire Mr Alabbar for his forward-thinking and relentless drive to innovate, a vision that has led to the creation of the world’s biggest mall. His track record in delivering exclusive luxury and retail experiences across the Middle East will provide us with invaluable insights in the fast-growing regional luxury fashion market.”
Yoox Net-A-Porter was created following the all-share merger between internet retailing partner Yoox and the controlling shareholder of The Net-A-Porter Group in March 2015.