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.
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."
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."
