StockMarketWire.com - Online fashion group Boohoo said it had acquired the remaining 34% stake in subsidiary prettylittlething.com for up to £323.8m.

The acquisition was expected to be 'significantly' earnings enhancing on a fully diluted basis with immediate effect, the company said.

The deal followed a turbulent few days for the company, after Shadowfall, a London hedge fund that specialised in taking positions against companies' share prices, reported Boohoo had overstated its cashflow and profits at its PrettyLittleThing subsidiary by £32m.

Boohoo said it 'strongly' refuted the allegations made in the research note.

The acquisition was for an initial sum of £269.8m, with a further £54.0m of consideration contingent on the group's share price averaging 491p per share over a 6 month period between completion and a longstop date of 14 March 2024.

The initial consideration was to be settled through a combination of shares in the group totalling £107.9m and an up-front cash payment of £161.9m.

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