Woolworths (ASX:WOW) to buy 80% stake in MyDeal

Company News

by Lauren Evans

Supermarket giant Woolworths (ASX:WOW) is set to purchase an 80 per cent stake in online marketplace retailer MyDeal.com.au (ASX:MYD) for $1.05 per share.

The proposed acquisition marks a 62 per cent premium on MyDeal's 64.5 cents closing price on Thursday afternoon, which valued it at $167 million. The total value of the acquisition sits at $243 million.

MyDeal listed on the ASX in October 2020. The company sells a range of consumer goods including furniture, electronics and kitchen appliances.

“The addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs and materially expands our marketplace capabilities, especially in general merchandise,” said Woolworths chief executive officer Brad Banducci.

Upon the arrangement, founder and chief executive officer Sean Senvirtne and its entities will retain 20 per cent of the business, although Woolworths will retain the option to purchase those remaining shares further down the track. MyDeal will also be delisted from the ASX.

MyDeal board recommends shareholders vote in favour of the deal. The scheme booklet will be sent to shareholders in July.

“The MyDeal team is excited by the opportunity to partner with Woolworths Group. It will help support the growth of our retail platform by accessing Woolworths Group’s capabilities across eCommerce, supply chain, retail, loyalty and more,” said Sean Senvirtne.

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