Frasers Group is taking strategic steps to expand its share in Boohoo Group, even as the latter’s stock price remains subdued.
In recent months, Boohoo’s share price has struggled to regain its pre-lockdown heights, currently lingering below 30p, down significantly from its previous value of over £4.
Just this month, Frasers Group increased its stake in Boohoo from 10.42% to an impressive 13.43%. In a recent stock exchange filing, it was disclosed that their ownership now stands at 15.12%.
With this latest acquisition, Frasers Group has solidified its position as the primary shareholder in Boohoo.
While the Frasers Group has refrained from offering an official statement regarding this ongoing stake-building, CEO Michael Murray has made it clear that he is the driving force behind these strategic share purchases.
In an exclusive interview with The Telegraph, Murray clarified that the majority shareholder, Mike Ashley, is not involved in these transactions. Murray refrained from revealing the precise reasoning behind these investments, stating that they are currently «in progress.» He explained, «It’s often easier to see the rationale after the fact. The acquisition of Flannels is a prime example. Now, it’s a natural part of the Frasers Group. Similarly, the acquisition of a 30% stake in Game may raise questions. However, in hindsight, the strategy becomes evident.»
Frasers Group has not only expanded its footprint in Boohoo but has also established substantial positions in Boohoo’s competitor, ASOS. Additionally, the company holds significant interests in Hugo Boss, Mulberry, and has diversified its portfolio with investments in non-fashion retail ventures.