Frasers Group has once again increased its stake in Boohoo as part of its ongoing “strategic investment” in the fashion retailer.
The retail conglomerate, which is already the largest shareholder in the online business, has upped its holdings from 15.1% to 16.5%.
This comes after the group raised its stake in Boohoo’s competitor, Asos, last week to 23% from 22.7%.
Frasers Group initially acquired a 5% stake in Boohoo in June, deeming the retailer an “attractive proposition” due to its strong focus on young female consumers.
The company saw this investment as an opportunity to enhance its own brand proposition alongside the fashion retailer and its I Saw It First and Missguided brands.
Speculations of a potential takeover were fueled earlier this month when Chief Executive Michael Murray referred to the investments in Asos and Boohoo, as well as Currys and AO, as being “mid-flight”.
Murray explained to The Telegraph, “All I can do is talk about how it looks very obvious afterwards. [Luxury department store] Flannels was an acquisition, and now it seems normal that Flannels is part of Frasers Group. And Game, you think: why would you buy 30% of Game? Afterwards, it’s all very obvious.”
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