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Sports Direct-owner Mike Ashley lifts Asos and Hugo Boss stakes | Sports Direct-owner Mike Ashley lifts Asos and Hugo Boss stakes |
(about 1 hour later) | |
The owner of Sports Direct has become the fourth-largest shareholder in online fashion retailer Asos. | The owner of Sports Direct has become the fourth-largest shareholder in online fashion retailer Asos. |
Frasers Group, which is owned by billionaire Mike Ashley, now owns 5% of Asos after building up shares in the company that holds the Topshop brand. | Frasers Group, which is owned by billionaire Mike Ashley, now owns 5% of Asos after building up shares in the company that holds the Topshop brand. |
On Monday, Frasers also announced it had raised its investment in Hugo Boss. | On Monday, Frasers also announced it had raised its investment in Hugo Boss. |
The company has bought up a number of UK retailers over the past few years spanning sportswear, fashion, furniture and bikes. | The company has bought up a number of UK retailers over the past few years spanning sportswear, fashion, furniture and bikes. |
It now owns 4.3% of Hugo Boss shares directly and an extra 28.5% through the sale of financial instruments known as put options. | It now owns 4.3% of Hugo Boss shares directly and an extra 28.5% through the sale of financial instruments known as put options. |
A put option is a contract that allows the owner the right to sell an asset at a future date at a predetermined price. Unlike normal shares, buying put options does not contribute to owning a majority stake or gaining voting rights in a company. | A put option is a contract that allows the owner the right to sell an asset at a future date at a predetermined price. Unlike normal shares, buying put options does not contribute to owning a majority stake or gaining voting rights in a company. |
"Frasers Group has extensive ambitions to grow the business inside and outside of the UK and is constantly exploring the potential for further expansion," the company said. | |
The retail giant added the move was the latest example of its "its drive to expand and acquire businesses and brands that can strengthen Frasers Group". | |
Why are prices rising so much? | Why are prices rising so much? |
Asos sees big loss as shoppers cut back on fashion | Asos sees big loss as shoppers cut back on fashion |
Asos recently reported a loss as the cost of living hit shoppers' budgets and the company has warned that it expects people to cut back even further in the months ahead. | Asos recently reported a loss as the cost of living hit shoppers' budgets and the company has warned that it expects people to cut back even further in the months ahead. |
Frasers Group said it was part of the "ordinary course of business to develop relationships and partnerships with other retailers, suppliers and brands". | Frasers Group said it was part of the "ordinary course of business to develop relationships and partnerships with other retailers, suppliers and brands". |
Mr Ashley, who founded the sportswear retailer Sports Direct, has in the past gone on to take over businesses he invests in including House of Fraser. | Mr Ashley, who founded the sportswear retailer Sports Direct, has in the past gone on to take over businesses he invests in including House of Fraser. |
This year he stepped down as chief executive of the company, handing over the role to his son-in-law, Michael Murray, though Mr Ashley remains the controlling shareholder in the group. | |
Danni Hewson, financial analyst at AJ Bell, said Mr Ashley's latest moves showed "clearly the retail kingpin is not done with the sector just yet". | |
"Asos' financial results revealed some significant problems for the business as spending by its core demographic dries up and the company faces rising costs and a more perilous balance sheet position, but Ashley clearly believes there is still value in the brand," she added. | |
The increase in Frasers' shareholding in Asos - first reported by the Sunday Telegraph - will not give it any control over the online fashion business or a position on its board. | The increase in Frasers' shareholding in Asos - first reported by the Sunday Telegraph - will not give it any control over the online fashion business or a position on its board. |
Along with House of Fraser and Sports Direct, the group also owns Flannels, Game, Jack Wills, Evans Cycles and Sofa.com. | Along with House of Fraser and Sports Direct, the group also owns Flannels, Game, Jack Wills, Evans Cycles and Sofa.com. |
The group has also built a significant shareholding in the fashion brand Mulberry. |