Woolworths Group has announced it will buy 80 per cent of online retailer MyDeal, taking on the likes of Kogan, Amazon and Catch in the e-tailer game.
MyDeal’s shares have soared this morning, up 55.81 per cent at 10:50am, Friday. Woolies shares are up a moderate 0.8 per cent.
Woolies has offered an all-cash consideration of $1.05 per share, an addition of 62.8 per cent to yesterday’s closing price of 65c per share.
The total value of the deal is $242.6 million, thereby valuing the entire company at $271.8 million.
Sean Senvirtne, the founder and CEO of MyDeal, and other “key management personnel” will retain a significant minority shareholding and will continue to lead the business.
MyDeal’s board has recommended its holders vote in favour of the deal.
