Frasers Group has upped up its stake in Boohoo further as it continues to build on its “strategic investment” into the fashion retailer.
Mike Ashley’s retail group already became the largest shareholder in the online fashion giant when it took a 13.4% stake on October 9. It increased that stake to 15.1% just a few days later. The latest purchase gives Frasers a 16.5% share in the Manchester firm.
Frasers first snapped up a five per cent holding in Boohoo back in June, describing the retailer as an “attractive proposition” through its “laser focus on young female consumers.”
Frasers also raised its stake in Boohoo rival, the Midlands-based Asos last week to 23%.
The latest move is sure to stoke takeover speculation after Frasers CEO Michael Murray described the group’s investments into Asos and Boohoo, as well as Currys and AO, as “mid-flight” to The Telegraph earlier this month.
He added: “All I can do is talk about how it looks very obvious afterwards. Flannels was an acquisition, and now it seems normal that Flannels is a part of Frasers Group. And Game, you think: why would you buy 30% of Game? Afterwards, it’s all very obvious.”
