Asos shares surge on takeover talk as Danish billionaire raises stake
Asos shares soared nearly 11% this week as Danish billionaire Anders Holch Povlsen increased his stake in the online fashion retailer,
Asos shares soared nearly 11% this week as Danish billionaire Anders Holch Povlsen increased his stake in the online fashion retailer, sparking renewed speculation of a potential takeover bid.
Povlsen, who is Asos’s largest shareholder, upped his stake from 27% to 28%. Should he reach 30%, he would be required to make a formal takeover offer under UK rules.
The move has fuelled market chatter that he may be positioning himself to take the online fashion giant private in a bid to revive the struggling retailer.
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According to Thisismoney, Dan Coatsworth, an analyst at AJ Bell, suggested that Povlsen may believe Asos would fare better as a private entity.
“Povlsen might feel Asos is better taken off the market and nursed back to health out of the spotlight,” he commented.
If Povlsen were to make a move, he could face a potential battle with retail tycoon Mike Ashley, whose Frasers Group holds a 22% stake in Asos.
Last month, the business appointed its first managing director as part of a series of organisational changes aimed at aligning its structure with its growth strategy and customer-first approach.
North America SVP Sean Trend has been named managing director for the UK and US, while senior vice president of operations Jag Weatherley will take on the role of managing director for Europe and the rest of world.
Michelle Wilson, previously chief of staff and strategy, will become managing director of Topshop and Topman. She will also oversea Asos’s global wholesale division, which covers partnerships with Nordstrom in the US, Reliance Retail in India and Bestseller in Europe.
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