Frasers Group buys more ASOS shares
Frasers Group has continued its stake-building in ASOS, moving up to now own 10.6% of the under-pressure digital fashion giant.
It marks the third time Frasers has raised its stake in a fortnight, after making two investments last week alone and consolidating its position as one of its biggest shareholders.
Although the move raises speculation of a possible takeover bid, Frasers’ now-10%+ stake importantly allows it to block a potential bid from elsewhere. Frasers Group has yet to comment.
ASOS has spent the year as a possible target following reports that Alibaba
Pressure on ASOS will continue despite the business hailing a return to profit in the three months to the end of May and saying it was on course to make £40 million-£60 million in the second half of the year.
Its still-new chief executive Jose Antonio Ramos Calamonte said he was confident in his turnaround strategy, having “restored profitability and made good progress in clearing through our inventory to generate cash.”
Last month ASOS raised £75 million to support its turnaround plan.
ASOS shares have risen in price in recent days on the back of all the activity around the firm.
