AIM listed musicMagpie has had an approach from BT and Aurelius who are seeking to acquire it. musicMagpie has cornered the market for second-user smartphones, games consoles, games and DVDs in the UK and also has a US operation Decluttr.
Having been founded back in 2007 – way before the circular economy became as prominent as it is now – the business has been through a period of declining demand with its sales falling. There is potentially strong synergy with BT which owns EE and could be seeking to grow sales of refurbished phones as well as acquiring the established infrastructure for the repair, refurbishment and onward fulfilment of smartphones.
In a statement to the stock market the board of musicMagpie said: “The Board of musicMagpie notes the recent speculation and confirms it is in early stage discussions with both BT Group plc and Aurelius Group as to a possible offer to acquire the entire issued and to be issued share capital of musicMagpie.”
News of the interest in this potential takeover has sparked a rise in the musicMagpie’s share price which had been languishing at under 20p. BT and Aurelius now have a deadline of 18th December to make a firm offer.
Share