AO World acquisition of musicMagpie gets UK FCA nod

(Alliance News) - AO World PLC on Wednesday revealed that the UK Financial Conduct Authority ...

Alliance News 6 November, 2024 | 10:16AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - AO World PLC on Wednesday revealed that the UK Financial Conduct Authority intends to approve its acquisition of musicMagpie PLC through its wholly-owned subsidiary AO Ltd.

The Bolton, England-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% 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.

Shares in AO World were up 2.1% at 106.20 pence on Wednesday morning in London, while musicMagpie shares were flat at 8.75p each.

By Christopher Ward, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
MusicMagpie PLC
AO World PLC 102.44 GBX -0.93 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures