Asos rejected a higher bid for Topshop from Shein and ABG

The online fashion retailer last week accepted an offer for the brands from its largest shareholder despite a joint offer of £215.5m tabled by Shein and ABG, according to The Times. 

Asos agreed instead to sell to Heartland, an investment and holding company “representing the interests” of the Holch Povlsen family and their Danish business Bestseller.

Bidders at Shein and ABG were reported to have felt on the cusp of agreeing a deal, only to be told at the 11th hour it would not proceed. Asos declined to comment. 

After the news broke last week, Asos said the deal with Anders Holch Polvsen, a major shareholder, was in the business’ best interest because it would still benefit from positive sales at Topshop under its new owners and the brand could continue to be sold on its website. 

Asos said in a statement that the joint venture will grant the fashion retailer “certain design and distribution rights” for the Topshop and Topman brands, while providing a royalty fee that enables it to continue selling and marketing the brands online.

At the time of the deal, Asos chief executive José Antonio Ramos Calamonte said: “The joint venture and the launch of the refinancing will accelerate our strategy to both offer customers the best and most relevant product and to turn Asos into a company that delivers sustainable, profitable growth.

“Topshop and Topman have made good progress since we acquired the brands in 2021. The new joint venture with Heartland is a testament to the brands’ potential and the partnership will help bring Topshop and Topman to more customers globally.

“Asos will continue to focus on what we do best – designing the best fashion and providing a destination for style. Through the joint venture, new opportunities, both online and offline, can be explored and we are excited to continue to be part of the brands’ future while also realising the best value structure for Asos shareholders today.”