Mike Ashley's Frasers says Currys and Boohoo stakes are 'supportive'
Reuters
Published Jun 20, 2023 12:55
LONDON (Reuters) - British sportswear group Frasers said its purchase of stakes in electricals retailer Currys and online fashion seller Boohoo were consistent with its strategy of building "supportive" positions in "attractive" companies.
On Monday, Frasers, formerly called Sports Direct (LON:FRAS) and majority-owned by Mike Ashley, disclosed an 8.9% stake in Currys and on Tuesday it disclosed a 5.01% stake in Boohoo.
"Driving growth through strategic investments is a core part of Frasers' DNA," the group said in a statement.
"Under (CEO) Michael Murray's leadership, we continue to build on our long track record of establishing supportive shareholder positions in attractive retail companies."
Frasers said Boohoo was attractive because of its focus on young women and the potential for synergies and collaboration with Frasers' existing brands I Saw It First and Missguided.
It said the Currys investment gave it an opportunity to build on its "foothold" in the electricals industry through collaboration.
Last week, Frasers acquired a 21.3% stake in AO World, the online electricals retailer, becoming its biggest shareholder, and forged a strategic partnership.
Shares in Frasers were up 0.4% in early afternoon trading. Shares in Currys were up 3% and shares in Boohoo were flat.
Frasers recently raised its stake in Boohoo rival ASOS (LON:ASOS) to 10.6%. It also has stakes in German fashion house Hugo Boss, British clothing retailer N Brown and luxury brand Mulberry.
Murray, Ashley's son-in-law, has been Frasers CEO since May last year. However, Ashley still owns 72% of Frasers' equity.
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Written By: Reuters
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