Business
Recommended Cash Acquisition of musicMagpie plc
Recommended Cash Acquisition of musicMagpie plc.
About this update from Ao World Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.\nFOR IMMEDIATE RELEASE\n2 October 2024\nRECOMMENDED CASH ACQUISITION\nOF\nMUSICMAGPIE PLC\nBY\nAO LTD\n(a wholly-owned subsidiary of AO World PLC)\n(to be implemented by way of a scheme of arrangement under Part 26 of the Companies Act 2006)\nSummary and highlights\n· The boards of directors of AO World PLC (\"AO\") and musicMagpie PLC (\"musicMagpie\") are pleased to announce that they have agreed the terms of a recommended cash acquisition of the entire issued and to be issued share capital of musicMagpie by AO Ltd (\"AO Bidco\"), a wholly-owned subsidiary of AO.\n· It is intended that the Acquisition will be implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act (although AO Bidco reserves the right to effect the Acquisition by way of a Takeover Offer, subject to the consent of the Panel and the terms of the Co-operation Agreement).\n· Under the terms of the Acquisition, each musicMagpie Shareholder will be entitled to receive:\nfor each musicMagpie Share: 9.07 pence in cash (the \"Consideration\").\n· The Acquisition values the entire issued and to be issued share capital of musicMagpie at approximately £9,982,105 on a fully diluted basis and represents a premium of approximately:\no 58 per cent. to the Closing Price of 5.75 pence per musicMagpie Share on 1 October 2024 (being the last Business Day before this announcement) (the \"Latest Practicable Date\");\no 58 per cent. to the volume-weighted average Closing Price of 5.75 pence per musicMagpie Share for the one-month period ended on the Latest Practicable Date; and\no 48 per cent. to the volume-weighted average Closing Price of 6.12 pence per musicMagpie Share for the three-month period ended on the Latest Practicable Date.\n· With complementary business models focused online and on customer service, AO believes the Acquisition will augment its capability and value capture in the mobile and consumer technology cat...