British retail giant Frasers Group, formerly known as Sports Direct, has increased its stake in online fashion retailer ASOS to almost 20%, making it the company’s largest shareholder..
Frasers Group, owned by billionaire Mike Ashley, confirmed on Thursday that it had acquired an additional 3.8 million shares in ASOS, taking its total stake to 19.9%. The move follows a series of share purchases by Frasers Group in recent months, which began in April when it acquired a 5.1% stake in ASOS..
The acquisition of a significant stake in ASOS is seen as a strategic move by Frasers Group, which is looking to expand its presence in the online fashion market. ASOS is one of the world’s largest online fashion retailers, with a strong presence in the UK, the US, and Europe. The company has a wide range of fashion and beauty products, targeting young consumers..
Frasers Group, on the other hand, has a strong presence in the sportswear and sports equipment market, with over 900 stores in the UK and Ireland. The group also owns other retail brands, including House of Fraser, Flannels, and USC..
The increased stake in ASOS gives Frasers Group a significant influence over the online fashion retailer. However, Frasers Group has stated that it does not intend to make an offer for ASOS at this time..
Analysts believe that Frasers Group’s move to increase its stake in ASOS is part of a broader strategy to diversify its business and reduce its reliance on the sportswear market. The acquisition of a stake in ASOS also gives Frasers Group access to the online fashion market, which is growing rapidly..
ASOS’s share price has been volatile in recent months, reflecting the challenges facing the online fashion sector. The company has been impacted by rising costs, supply chain disruptions, and increased competition. However, ASOS remains one of the leading players in the online fashion market, and Frasers Group’s investment in the company is a sign of its confidence in the company’s long-term prospects..
The acquisition of a significant stake in ASOS by Frasers Group is a major development in the UK retail market. It remains to be seen how Frasers Group will use its influence over ASOS, but the move is likely to have a significant impact on the online fashion market in the UK and beyond..
