AIM-listed firm one step closer to securing Nasty Gal after bankcruptcy court approves of offer
Companies: boohoo group Plc
Shares in Boohoo (LON: BOO) surged past 140p (+c 2.5%) on Monday, as news regarding its attempted takeover of Nasty Gal was released by the AIM-listed firm.
The online fashion retailer told investors that the US Bankruptcy Court overseeing its application to purchase Nasty Gal has approved the process for selling the firm's assets for $20m to Boohoo.
The announcement sent BOO shares surging past the 140p target price that several brokers had placed on the stock, as investors started pricing in accelerated growth for the Group's international business, a sentiment shared with Boohoo's management:
"The Board believes the proposed transaction has the potential to accelerate the Group's international growth, particularly in the US, building on boohoo's existing customer reach and product range across the globe."
It comes less than a week after confirmation of its acquisition of PrettyLittleThing.
The Group's bid may not result in a transaction if higher or more favourable offers are obtained by Nasty Gal during the auction process.