Frasers Group takes 18.9% stake in AO World for £75m

(Sharecast News) - Mike Ashley's Frasers Group has said it had taken an18.9% stake in electrical retailer AO World for £75m. The owner of Sports Direct, House of Fraser and other retail clothing chains said it bought 109.4 million shares at 68p each.

"The investment is the culmination of productive talks over the last two years about establishing a strategic partnership," AO World said in a statement.

Frasers Group chief executive Michael Murray said 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."

Reporting by Frank Prenesti for Sharecast.com