Tycoon Mike Ashley’s Frasers Group has increased its stake in fashion pureplay Asos, which has been at the centre of takeover talk.
A purchase of shares yesterday took Frasers’ holding in Asos to almost 10%, compared with 7.4% at the start of the week.
The stakebuilding followed a report at the weekend that Alibaba-backed Turkish etailer Trendyol had approached Asos late last year about a possible £1bn takeover.
Frasers, which has invested in and acquired a wide variety of retailers, is Asos’ third-largest shareholder and appears to be positioning itself to wield key influence over the etailer’s future.
If Frasers takes its stake above 10%, it could put a stop to would-be buyers’ ambitions by refusing to sell.
In addition to Trendyol, there has been speculation that Asos’ biggest shareholder, Danish tycoon Anders Holch Povlsen, could be considering a pounce on Asos.
The share purchase follows The Telegraph reporting that an offer from Frasers chief executive Michael Murray to share “retail expertise” with Asos in return for a 5% stake was rebuffed.
Asos is in the midst of a turnaround programme, led by chief executive José Antonio Ramos Calamonte.
Like other etailers, it has struggled to navigate changed retail conditions as the online boom sparked by the pandemic abated and bricks-and-mortar stores bounced back.
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