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Boohoo buys out prettylittlething shareholders for 270 million pounds

·1-min read
FILE PHOTO: A shopper walks pass advertising billboards for Boohoo and for 'Pretty Little Things', a Boohoo brand, at Canary Wharf DLR station in central London
FILE PHOTO: A shopper walks pass advertising billboards for Boohoo and for 'Pretty Little Things', a Boohoo brand, at Canary Wharf DLR station in central London

LONDON (Reuters) - British online fashion retailer Boohoo <BOOH.L> has acquired the remaining 34% of shares in the prettylittlething (PLT) brand from minority shareholders for an initial 269.8 million pounds ($331 million), it said on Thursday.

Boohoo said the purchase price, which could potentially rise to 323.8 million pounds, will be funded through a combination of shares totalling 107.9 million pounds and cash of 161.9 million pounds.

The minority shareholders are Umar Kamani, the founder and CEO of PLT who is the son of Boohoo's executive chairman Mahmud Kamani, and Paul Papworth.

Boohoo, which purchased its initial 66% stake in PLT in 2017, said it expected the deal to be "significantly earnings enhancing".

After the purchase Boohoo will retain over 350 million pounds of cash which it said left it well-positioned to take advantage of "numerous M&A opportunities that are likely to emerge in the global fashion industry over the coming months."

Shares in Boohoo, up 42% over the last year, closed on Wednesday at 334.9 pence, valuing the business at 4.14 billion pounds.

(Reporting by James Davey; editing by Kate Holton and Jason Neely)