Emaar Malls ups ante in e-retail battle

Emaar will buy the stake in Namshi in an all cash transaction, which is expected to close in three months.

Emaar Malls has announced that it will acquire a 51 per cent stake in Namshi from Global Fashion Group (GFG) for $151 million, as part of a partnership that will accelerate Namshi's development in the region.
Under the partnership, Emaar Malls will support the company to access additional fashion brands, further develop its logistics infrastructure and expand its geographical footprint in adjacent countries. Namshi will continue to benefit from GFG's network, expertise in fashion e-commerce and shared resources, such as global brand acquisition and global IT development and innovation.
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."
Emaar will buy the stake in Namshi in an all cash transaction, which is expected to close in three months. As part of the transaction, both partners have agreed on jointly developing the company until a possible listing or full transfer of ownership. Led by co-founders Hosam Arab, Faraz Khalid and Hisham Zarka, Namshi launched in 2012 and offers a wide range of over 50,000 products across more than 600 international and local fashion brands and its own private labels. The company already serves over 750,000 customers across the GCC.
Hosam Arab, MD of Namshi, said: "We are very excited to welcome Emaar Malls as our majority shareholder. We are confident that this partnership will unlock further opportunities and help accelerate the development of Namshi for the benefit of our customers. We would like to congratulate and thank our team for their tireless efforts in making Namshi the Middle East's premier fashion e-commerce destination and we look forward to continuing this journey together with Emaar Malls and GFG."
Romain Voog, CEO of GFG, said: "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."
Emaar's announcement follows in the footsteps of its other acquisitions, as its chairman Mohamed Alabbar prepares to unveil his latest technology venture, Noon.com, a venture with Saudi Arabia's Public Investment Fund. Noon.com is expected to go live by the end of this year.
Alabbar has been increasingly focusing on technology investments and e-commerce in the past year, buying a stake in regional logistics firm Aramex. Previously, Alabbar acquired a four per cent stake in online fashion retailer Yoox Net-A-Porter (YNAP) in a move expected to push the Italian group's growth in the high-potential Middle Eastern market.
- rohma@khaleejtimes.com