UPDATE 1-Ontario Teachers' fund invests in online retailer Zalando

Wed Oct 2, 2013 4:39am EDT
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* Ontario Teachers' takes 2 percent stake

* Dane Anders Holch Povslen maintains 10 pct stake

* Zalando managing director says IPO not on cards for now

FRANKFURT, Oct 2 (Reuters) - The Ontario Teachers' Pension Plan (OTPP) has bought a 2 percent stake in Europe's biggest online fashion retailer Zalando, continuing a push into e-commerce investment for the fund.

Berlin-based Zalando, which has brought on board several new investors over the last year as it seeks to fund expansion, said on Wednesday OTPP took the stake as part of a 4 percent capital increase at the group.

Danish fashion magnate Anders Holch Povslen, who bought a 10 percent stake in Zalando in August, also took part in Wednesday's capital increase to keep his share at 10 percent

Zalando managing director Rubin Ritter declined to give the amount paid by OTPP for the 2 percent stake.

He told Reuters the new investor would not change Zalando's strategy, but that the fresh funds from OTPP would allow it to work on expanding its market share and reaching break-even.

Zalando last year made a loss before earnings and tax of around 80 million euros ($108 million) on sales of 1.15 billion.   Continued...