AO World (LON:AO.) and retailer Frasers Group (LON: FRAS) have entered a strategic partnership with Frasers taking a 18.9% stake in the online domestic appliances retailer. The two companies have been talking for two years.
The shares are being acquired at 68p each and the total investment is £75m. The AO World share price has risen 3.55p to 73.1p. The Frasers share price improved by 0.8% to 689.75p. Odey Asset Management has reduced its stake in AO World from 24.2% to 5.92%.
Frasers expects to benefit from AO World’ experience in electricals and in deliveries. It believes the expertise can be used for its bulk equipment and homeware ranges. The two companies will explore strategic opportunities.
Frasers has continued to build up its stake in online fashion retailer ASOS (LON: ASC), where there have been bid rumours of a potential bid. The stake has reached 9.87%.