Frasers Group ups ASOS stake amid takeover speculation
Mike Ashley’s Frasers Group has upped its stake in ASOS for the second time in a week, as speculation over the fashion retailer’s future continues to swirl.
On Tuesday, the group increased its total holdings in ASOS to 8.8% and increased them again on Thursday to 9.9%, suggesting a potential takeover could be on the cards.
News broke earlier in the week that ASOS had became the target of a £1bn takeover bid from Turkish retailer Trendyol in December. Despite the offer being rejected, the retailer’s low share price may make it an attractive prospect for any potential buyers.
Frasers Group is no stranger to an acquisition, having picked up brands including Missguided, I saw It First, Amara, and Gieves & Hawkes last year. In 2023, the group has also purchased a number of shopping centres.
The group would likely need the support of ASOS’s two largest shareholders, Anders Holch Povlsen and Camelot Capital Partners, who own stakes of 26% and 15% respectively.
This is not a given, as Povlsen has been a long-term stakeholder of the retailer and dismissed rumours over any involvement with the Trendyol bid.
ASOS has seen its share prices plummet by over 95% since its peak in 2018, as it struggles with supply line issues and higher trading costs.
In May, the retailer raised funds of around £75m to support its growth plans.