More shareholders raise concerns that Richemont offer “undervalues” yoox Net-a-Porter

Shareholders in luxury online retailer Yoox Net-a-Porter (YNAP) have raised concerns that a proposed takeover bid undervalues the business.

Ciccio Azzollini, chief executive of Italian investment firm 3IP and a YNAP investor told City A.M. that an offer by Montblanc owner Richemont of €38 per share is too low. The bid values YNAP at €5bn (£4.4bn).

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He said the offer “significantly undervalues the underlying quality of the Yoox’s business,of its competitive position, of its growth prospect, its financial strength and its management.”

His comments come after another shareholder, Isaac Schwartz of New York investors Robotti and Company told the Sunday Times that the company should remain independent for the time being.

Mark Hiley, founder of research house The Analyst, told City A.M. that several of his clients own shares in YNAP. “There’s definitely a consensus that the bid undervalued the company,” he commented.

He said there were concerns that minority shareholders who had “suffered” through the merger of Yoox and Net-a-Porter will now be unable to reap the rewards of this integration.

“I thought Yoox could scale up to have double digit margins in the next few years,” he said, contrasting the business with the likes of Asos. The Analyst’s research had tipped YNAP for a €43 target price.

“Europe’s a really difficult place to be listed as a technology company because there’s not a culture of investment and vision like there is in the US,” he added. “European investors want dividends and they want certainty.”

Richemont and YNAP declined to comment.

Richemont’s offer has so far only been announced as an intention to bid, with initial filing submitted last week. YNAP shareholders will need to wait until an offer is officially made to vote on it.

The Swiss giant already owns 49 per cent of the company, and YNAP’s chief executive Frederico Marchetti has pledged to accept the offer for his own shares. Major shareholder Renzo Rossi, who holds five per cent, has called the bid “fantastic”.

Analysts at RBC Capital Markets said the bid was likely to be passed due to the support of management and Rossi, with an expected closure date in May.

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