The Iconic’s superstructure has been revised, with Rocket Internet and AB Kinnevik welding its holding company, Zalora Group and four other regional business into one international giant: Global Fashion Group.
One of the biggest and most talked-about of Australia’s pureplay fashion retailers, The Iconic has become part of an international merger, as Swedish investment holding AB Kinnevik and accelerator Rocket Internet agree to weld together five online fashion retailers.
Global Fashion Group – the name given to the new international business – is an amalgam of Russia’s Lamoda, Brazil’s Dafiti, India’s Jabong, the United Arab Emirates’ Namshi and Malaysia’s Zalora. As a subsidiary of the Zalora Group, The Iconic is therefore included in the merger.
The move comes as a result of the Berlin-based Zalando outlining plans for an initial public offering (IPO). Kinnevik owns a 36 percent stake in the shoe and fashion retailer, while the Samwer brothers’ Rocket Internet controls 16 percent.
The new Global Fashion Group has been valued at US$3.5 billion and will continue operations across Latin America, India, Russia, the Middle East, Southeast Asia and Australia. As a result, the company will have access to 2.5 billion people across 23 countries.
The majority of direct and indirect shareholders in the original five companies will contribute their stock to an entity due to be formed in Luxembourg, Kinnevik has said in a recent statement. Kinnevik and Rocket Internet maintain their position as the most significant stakeholders, with 25.1 percent and 23.5 percent in Global Fashion Group respectively. Access Industries Holdings will have a 7.4 percent stake.
The subsidiary companies, including The Iconic, will continue to be led by their existing founders and management with a few key additions to be announced that will aim to accelerate growth where required.
The agreed transaction is subject to antitrust approval and binding rulings, with Kinnevik stating it expects the deal to be closed later this year.