Frasers Group has increased its stake in fashion pureplay Asos for the third time in two weeks, as takeover speculations increase.
Mike Ashley’s sprawling retail group increased its stake in Asos from 9.9% to 10.6% as the online fashion giant returned to profitability in its third-quarter results.
Asos reported adjusted EBIT “up more than £20m year on year” and said it was “on track” to achieve guidance of between £40m and £60m in the second half as its turnaround strategy paid off.
Asos has been at the centre of takeover talks ever since news of a £1bn buyout bid from Alibaba-backed Turkish fast-fashion platform Trendyol broke.
Frasers owned a 7.4% stake in Asos at the beginning of last week and has since then increased its stake three times in two weeks. With a stake higher than 10%, Frasers has strengthened its position as a shareholder and could put a stop to would-be buyers’ ambitions by refusing to sell.
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