ELECTRICAL retailer Dixons is to boost its European portfolio by acquiring a controlling stake in a Greek chain.

The group has agreed to buy 38.7 per cent of electrical specialist P Kotsovolos for £36m, bringing its total holding in the company to 52.3 per cent.

Kotsovolos, which trades under the Kotsovolos, Radio Athinai and One Way brands, employs 1,700 people at 77 stores and 50 concessions.

During the past financial year, it made pre-tax profits of £2.3m on sales of £245m.

Dixons, which is paying a 28 per cent premium to last month's average share price, described the acquisition as a complementary business with growth potential.

Dixons will have to make a public tender for the remaining shares in Kotsovolos at 6.50 euros a share.