UK's AO World to buy musicMagpie in $13.3 mln deal (updated)

Musicmagpie

02/10/2024 07:32

(Adds details of deal in paragraph 2, chair comment in
paragraph 3)
       Oct 2 (Reuters) - UK online electricals retailer AO
World  AO.L  said on Wednesday it would buy the retailer of used
smartphones and electronic products musicMagpie  MMAG.L  for
about 10 million pounds ($13.3 million) to boost its mobile and
consumer tech businesses.
    The 9.07 pence-per-share offer represents a premium of 58%
to musicMagpie stock's closing price on Tuesday.
    "With highly complementary business models, this acquisition
will enable us to broaden our customer offerings while
simultaneously advancing our sustainability objectives," AO
World non-executive Chair Geoff Cooper said in a statement.
    The musicMagpie board has unanimously recommended 
shareholders to vote in favour of the deal.
    Last year, telecoms group BT  BT.L  and investment firm
Aerilius Group dropped out of their separate pursuit of
musicMagpie, without citing a reason for doing so.
    
($1 = 0.7534 pounds)

 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Subhranshu Sahu and Rashmi Aich)
 ((abyjose.koilparambil@thomsonreuters.com))