South Korea’s Coupang to buy online luxury firm Farfetch

(Reuters) – South Korean e-commerce giant Coupang said on Monday it was planning to buy online luxury firm Farfetch Holdings.

Shares of Farfetch, which has a market capitalization of $226.7 million, were halted, while those of Coupang were down 2.7% in early trading.

Coupang made the deal with an investor group that held over 80% of the outstanding $600 million term loans. The deal would provide Farfetch with $500 million in capital.

Last month, the Telegraph reported that Farfetch founder and CEO José Neves was in talks with top shareholders, including Cartier-owner Richemont, to take the company private.

(Reporting by Savyata Mishra in Bengaluru; Editing by Anil D’Silva)