Emaar Malls, the retail unit of Emaar Properties, said on Monday that it has fully acquired Namshi, the regional fashion e-commerce retailer.
This follows acquiring the remaining stake of Global Fashion Group (GFG) in Namshi, in an all-cash transaction of AED475.5 million ($129.5 million).
GFG and Emaar Malls entered into a strategic partnership in 2017 when Emaar Malls acquired a 51 percent stake in Namshi.
Emaar Malls said the full acquisition of Namshi is a "natural evolution" of the company's digitally-driven strategy to leverage the growing e-commerce market in the Middle East and North Africa region.
Namshi has a 1.2 million and growing active customer base, and recorded growth in the past two years, having recorded sales across the UAE and Saudi Arabia of AED849 million in 2018, an increase of 16 percent compared to the previous year.
Mohamed Alabbar, chairman of Emaar Properties, said: “The remarkable growth achieved by Namshi underlines the potential for fashion e-commerce in the region, where, every day, a larger number of people shop online to meet their fashion aspirations.
"With the consolidation of our stake in Namshi, we are highlighting our commitment to position Emaar Malls for growth over the next decade and to create outstanding value for all our shareholders through our omnichannel strategy.”
Patrick Bousquet-Chavanne, CEO of Emaar Malls, added: “Namshi is a remarkable success story that reflects the changing shopping habits of young fashion-conscious customers in the region. The majority acquisition of the company in 2017 had heralded a new era for Emaar Malls in building its online presence. Today’s acquisition underlines the acceleration of our ‘Digital Forward’ strategy.”
Founded in 2011, Namshi now showcases a selection of 700 brands includes leading global names.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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