Woolworths Group is to acquire a majority 80.2 per cent stake in online marketplace, MyDeal.
Sean Senvirtne, CEO and founder of MyDeal, and other key management will retain the balance of the shares and will continue to lead the business after the sale.
The deal – an all-cash consideration of $1.05 per share – values MyDeal at $271.8 million and is subject to customary conditions, including ACCC and court approval. Confirmation is expected during the third quarter and MyDeal will be delisted after the sale is complete.
MyDeal CEO, Sean Senvirtne, said the transaction is a highly attractive proposition to shareholders and represents a significant premium to MyDeal’s share price.
“The entire MyDeal team is looking forward to partnering with Woolworths Group, which will deliver a step-change in the growth of our retail platform by accessing sector-leading capabilities across e-commerce, supply chain, retail, loyalty and more.”
Senvirtne, has committed to selling his 47.3 per cent stake in MyDeal shares, and other shareholders Silver Globe and Aavasan (Gandel Invest), which together hold or control 28.6 per cent of the target, have committed to vote in favour of the sale, effectively confirming it unless a higher offer is made by a third party.
Woolworths Group CEO, Brad Banducci, said adding MyDeal to Woolworths Group would mark a step further towards delivering “a more holistic customer experience in food and everyday needs” and materially expands the company’s marketplace capabilities, especially in general merchandise.