Frasers Group, known for its strategic acquisitions and shareholdings, has quietly increased its stake in Boohoo Group. In a recent stock exchange filing, it was revealed that Frasers Group now holds over 13% of Boohoo, up from its previous 10.42% stake. This move comes as Boohoo’s share price has recently declined to around 30p following its latest financial results.
The increased stake suggests that Mike Ashley, who controls most of the shares in Frasers Group, sees value in Boohoo, albeit possibly from a different perspective than ordinary shareholders seeking long-term share price growth. Ashley is known for acquiring businesses at favorable prices and often looks for complementary acquisitions within his group’s portfolio.
While it’s uncertain whether Frasers Group intends to make a larger move for Boohoo, the company has previously denied such ambitions. Frasers’ strategy has been to build «supportive» positions in «attractive» companies, as seen in its substantial holdings in other brands like Hugo Boss and Mulberry without pursuing takeovers.
This increased stake in Boohoo could reflect Frasers Group’s confidence in the brand’s potential and aligns with its strategic approach to investments in the retail sector.