The strategic move follows the initial acquisition announcement in December 2023 that provided Farfetch with a capital infusion of $500m.
The acquisition will enable Farfetch to continue delivering service to its brand and boutique partners as well as to its customer base, which exceeds four million globally.
The announcement from Coupang comes amid opposition from Farfetch investor group 2027 Ad Hoc, which criticised the sale’s expedited process.
The group, holding more than 50% of Farfetch’s convertible senior notes, has expressed concerns over the lack of transparency and corporate governance within Farfetch.
2027 Ad Hoc argues that the swift sale to Coupang has prevented proper asset marketing and failed to maximise stakeholder value.
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The investor group has pointed out issues including Farfetch’s rapid financial decline, the sale’s valuation below market expectations, and the terms of the transaction support agreement.
The agreement, dubbed the “poison pill”, has effectively barred other potential bidders, raising questions about the sale’s integrity.
The group is now considering all available options, including litigation, to recover value.
A spokesperson for the Ad Hoc Group stated: “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.”
Founded in 2007, Farfetch is a global platform for the luxury fashion industry, connecting customers in more than 190 countries and territories.