Frasers Group has invested £75m to acquire a stake of 18.9 per cent in online electricals retailer AO World. The investment is said to be strategic with both Frasers Group and the AO World board behind it. The stake had purportedly been acquired from hedge fund Odey Asset Management which is currently coming to terms with the crisis caused by alleged sexual misconduct claims against its founder Crispin Odey.
Michael Murray, CEO, Frasers Group commented: “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.”
John Richards, founder and chief executive of AO added: “This is great news for AO and a fantastic endorsement for our business. We are delighted to welcome Michael and the wider Frasers team into the AO family and look forward to realising the significant potential that we see for this partnership.”
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