Frasers ups stake in AO amid £80m share buyback programme
It comes as the group said it intends to launch a new share buyback programme with Deutsche Numis
Frasers has upped its stake in AO World to 24.7% amid the launch of a new £80m share buyback programme.
The Mike Ashley-owned group previously held 23% of its shares.
Last year it was reported that Frasers Group had acquired an 18.9% strategic stake in AO World.
At the time, the investment cost the group £75m and was said to be “the culmination of productive talks over the last two years about establishing a strategic partnership”.
Michael Murray, CEO of Frasers Group, 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.”
News of the increased stake comes as the group said it intends to launch a new share buyback programme with Deutsche Numis for the period up to and including the last trading day prior to its financial year end on 28 April 2024.
It said the aggregate purchase price of all shares acquired will be “no greater” than £80m, while the maximum number of shares that may be purchased will be 10,000,000 ordinary shares.
