Dubai's Emaar buys remaining 49% of website Namshi

Emaar Malls, the retail arm of Emaar Properties, bought a 51 percent stake in Namshi from GFG for $151 million in 2017

  
Image used for illustrative purpose. The corporate logo of EMAAR is seen in Dubai, United Arab Emirates, December 28, 2018.

Image used for illustrative purpose. The corporate logo of EMAAR is seen in Dubai, United Arab Emirates, December 28, 2018.

REUTERS/ Hamad I Mohammed

DUBAI: Dubai's Emaar Malls on Monday bought the 49 percent of e-commerce fashion website Namshi it did not own from Global Fashion Group (GFG) for 475.5 million dirhams ($129.5 million).

The owner of Dubai Mall, the Middle East's largest shopping centre, said it bought the stake in an all-cash transaction.

"We have ambitions throughout the region with Namshi so I think they are going to give us a geographic outreach that we do not have with the Dubai Mall today. So that is fundamental," Emaar Malls CEO Patrick Bousquet-Chavanne told Reuters.

Emaar Malls, the retail arm of Emaar Properties, bought a 51 percent stake in Namshi from GFG for $151 million in 2017 shortly after Amazon.com bought Dubai-based e-commerce website Souq.com.

Emaar at the time made an unsuccessful bid for Souq.com.

"Namshi is a remarkable success story with great long-term potential," Bousquet-Chavanne said. "It is an asset we are thrilled to own outright."

Bousquet-Chavanne said there would be "no job cuts whatsover" from the deal.

He also said he did not expect Namshi to collaborate with Noon.com, an e-commerce website that Emaar founder and chairman Mohamed Alabbar set up with Saudi Arabia’s Public Investment Fund. ($1 = 3.6728 UAE dirham)

(Reporting by Alexander Cornwell Editing by David Goodman) ((Alexander.Cornwell@thomsonreuters.com;))


More From Equities