Dubai: The Gulf’s ecommerce giant Noon AD Holdings has agreed to buy the whole of Namshi, the fashion portal, from Emaar Malls for Dh1.23 billion. It will be an all-cash deal.
“The consideration represents an excess of Dh127 million on the total investment by Emaar Malls in Namshi, including purchase consideration and subsequent investment,” said a statement. (Emaar had bought a majority in Namshi in 2017 and raised it to full two years later.)
The transaction is expected to close in six months, once all the conditions are met, including inter alia, final regulatory approvals and approval from Emaar’s shareholders. Emaar has called a shareholders meeting September 21, which will take up the sale decision. The Dubai developer had earlier said the proceeds from Namshi sale will be used in real estate activities and that it will focus purely on core activities from now on.
The net gain Emaar will be making from the sale of Namshi to noon. Deal is expected to close in six months
noon shareholders include Saudi wealth fund PIF as well as the Emaar founder Mohammed Alabbar and other ultra-high networth individuals.
"Namshi's success and ambition are well-documented," said a noon spokesperson. "The brand has evolved from a start-up to a beloved one, competing for local ecommerce with much larger international fashion and beauty players. And they've kept their lead. Much of their story is similar to noon's. And we're thrilled to be able to assist them in taking their growth and success to the next level."
It was in 2017 that Emaar bought a majority in Namshi and then two years later, bought up the rest of it. Through the Covid phase, Namshi was central to Emaar's online shopping prospects and staying connected with the shopper base.
“We are proud to have been part of Namshi’s journey and are confident that Namshi will reach greater heights and success under noon’s ownership," a spokesperson for Emaar Malls said. "The capital generated through the divestment of Namshi, a non-core asset for Emaar, would be deployed in core focus areas of Emaar to generate shareholder value. Further, the sale of Namshi at a premium to its purchase price generates additional value for Emaar shareholders.”