AO World PLC revealed last week that the UK Financial Conduct Authority intends to approve its acquisition of musicMagpie PLC through its wholly-owned subsidiary AO Ltd. The Bolton-based retail group specialising in electrical goods said that the FCA has given the two firms notice of approval for the acquisition. The FTSE 250-listed firm added that the deal still requires court approval as well as the green light from shareholders at the firm's general meeting on November 20.
The firm expects the deal to complete in either the fourth-quarter of this year or the first-quarter of 2025. Last month, AO World revealed that terms for a cash acquisition had been agreed between the two firms, valuing Stockport-based musicMagpie at GBP9.9 million on a share price value of 9.
07 pence per share, representing a 58 per cent premium to its closing price of 5.75p the day before. In explaining its rationale behind the deal, AO World highlighted the importance of enhancing its consumer technology offering in supporting its strategic ambition for becoming the destination for electricals.
John Roberts set up the AO online firm after a bet in a pub. READ MORE: AO World secures £10m takeover deal for musicMagpie John Roberts founder returns to helm after boss stands down Mr Roberts founded the group in 2000. It was when he was in his mid-twenties Mr Roberts, then an appliance salesman, was having a beer with a friend in Bolton when he made a £1 wager saying he would set up his own kitchen busin.
