With a perspective towards the further development of Namshi, the popular fashion online retailer in the Middle East, Global Fashion Group (GFG) and Emaar Malls have joined hands to initiate the process.
Based on the collaboration, Emaar Malls will secure a 51% stake in Namshi by investing $151 million while GFG will hold the remaining 49% stake. The entire transaction will be made in cash, which will aim for the future development of the e-commerce website.
Both Emaar Malls and GFG will contribute towards the all-angle development of the fashion retailer for better consumer attraction. Emaar Malls will attach many top fashion brands on the website for development of logistic infrastructure and expansion of geographical footprint. Similarly, GFG will render towards upgrading the software of Namshi by exuding its knowledge on the online fashion industry and sharing resources like IT development and innovation.
Talking about the association, Mohamed Alabbar, chairman of Emaar Malls and Emaar Properties, said, "The acquisition of a majority stake in Namshi underlines our digital-driven strategy to leverage the growing e-commerce market in the Middle East and North Africa region. Namshi offers a perfect fit for Emaar Malls in accelerating its focus on multi-channel retailing, and creating long-term value for its stakeholders."
Meanwhile, Romain Voog, CEO of GFG, added that with the complementary strengths of Emaar Malls and GFG, Namshi is now more than ever uniquely positioned to be the best long term partner for fashion brands and customers in the region. GFG's partnership with Emaar Malls follows the Group's strong performance in 2016 and is another step in our journey to create sustainable, profitable fashion e-commerce leaders in each of our regions."
Under the joint collaboration, both the partners have settled for a mutual agreement of working for the development of the e-commerce retailer until the full transfer of ownership.
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