AO is a UK-based electrical retailer. Credit: Michael Kramer/commons.wikipedia.org.

UK-based sportswear and fashion retailer Frasers Group has acquired an 18.9% stake in online electrical goods retailer AO World.

Sky News reported that Frasers acquired the stake from London-based hedge fund Odey Asset Management.

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As part of the deal, Frasers bought 109,400,000 issued shares at a price of 68p, taking the deal value to £75m.

AO is headquartered in Bolton and is one of the UK’s largest online-only white goods and electrical retailers.

Frasers Group CEO Michael Murray said: “Frasers has long admired what John and the AO team have built and we are delighted to have the opportunity to form a supportive, strategic partnership.

“AO is a fantastic business with a clear strategy which is leading the market in online-only electricals. Through this investment, Frasers will benefit from AO’s valuable know-how in electricals and two-man delivery, helping us to drive growth in our bulk equipment and homeware ranges. In turn, AO will have the opportunity to benefit from Frasers’ expertise and ecosystem.”

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In a separate development, Frasers Group Asia signed a new joint venture agreement with PT. MAP Active Indonesia.

The agreement is part of Frasers Group’s region-wide expansion strategy and will introduce Sports Direct’s elevated stores across Indonesia.

Michael Murray added: “As part of our continued international expansion strategy and the success of our existing business in Malaysia, we are excited to grow our Southeast Asian footprint with a presence in Indonesia. Today’s announcement supports our vision to build the planet’s most admired and compelling brand ecosystem.”