Frasers takes Boohoo stake to over 17pc

4th Dec 2023 07:22

(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.