Emaar Malls to acquire 51% of e-commerce retailer Namshi for $151m
Global Fashion Group and Emaar Malls unveil joint partnership to develop Namshi
Global Fashion Group (GFG) and Emaar Malls have partnered to further the development of Namshi, a fashion e-commerce retailer in the Middle East.
Under the partnership, Emaar Malls will acquire a 51% stake in Namshi for $151m, an all-cash transaction, which includes investment in the company for its future growth, and GFG retaining the remaining 49% stake.
Emaar Malls will offer additional fashion brands, further develop its logistics infrastructure and expand its geographical footprint. GFG's will offer its knowledge in fashion e-commerce and shared resources such as IT development and innovation.
Mohamed Alabbar, chairman of Emaar Malls and Emaar Properties, said: "The acquisition of a majority stake in Namshi underlines our digital-driven strategy to leverage the growing e-commerce market in the Middle East and North Africa region. Namshi offers a perfect fit for Emaar Malls in accelerating its focus on multi-channel retailing, and creating long-term value for its stakeholders."
Romain Voog, CEO of GFG, added: "With the complementary strengths of Emaar Malls and GFG, Namshi is now more than ever uniquely positioned to be the best long term partner for fashion brands and customers in the region. GFG's partnership with Emaar Malls follows the Group's strong performance in 2016 and is another step in our journey to create sustainable, profitable fashion e-commerce leaders in each of our regions."
As part of this transaction, both partners have agreed on developing jointly the company until a possible listing or full transfer of ownership.
Closing of the transaction is expected to take place within three months.