Frasers takes Boohoo stake to over 17pc
(Sharecast News) - Mike Ashley's Frasers Group has increased its stake in the online fast fashion retailer Boohoo Group, it announced on Monday.
As of 1 December, the company was interested in 218,387,739 Boohoo shares, representing 17.22% of the total shares.
The move marked an incremental increase from Frasers' previous stake of 16.5% in Boohoo, making it the largest single shareholder in the company since mid-October.
Frasers first acquired a 5% holding in Boohoo in June, citing the potential synergies between Boohoo and its brands, I Saw It First and Missguided and expressing hopes for future collaborations.
Before Frasers Group's stake acquisition, Mahmud Kamani, Boohoo's co-founder, held the title of the largest individual shareholder with a 12.9% stake.
Together with his co-founder, Carol Kane, they had an aggregate stake of 25% in the company.
Boohoo's share price had plunged in recent months amid declining sales due to the cost-of-living crisis and the implementation of a turnaround plan.
It warned of a potential decline of up to 17% in full-year sales in October due to a slower-than-expected sales volume recovery and a strategic shift towards more profitable sales within its brand portfolio as part of its ongoing overhaul plans.
At 0819 GMT, shares in Frasers Group were down 0.06% at 899p, while those in Boohoo Group were up 2.92% at 34.63p.
Reporting by Josh White for Sharecast.com.
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