6th Nov 2024 10:16
(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
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