Frasers raises Asos stake amid takeover speculation

Frasers Group has raised its stake in Asos to 25.13% from 24.21%, strengthening its position as the second-largest shareholder in the online fashion retailer.

The move follows an increase by Asos’ largest shareholder, Danish billionaire Anders Holch Povlsen’s Bestseller, which upped its stake to 28% last week.

The shareholder activity has added fuel to takeover speculation surrounding the online fashion giant, particularly with Povlsen now just 2% away from the 30% threshold that would require a mandatory offer for the company under UK acquisition rules.

The developments come as the retailer issued a positive profit outlook for the first half of the year last week.

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The business said it expects a “significant” improvement in profitability, thanks to strong gross margin growth driven by lower markdowns, a higher mix of full-price sales, and disciplined cost management.

It is forecasting total sales growth of 13% and adjusted EBITDA of £34m, ahead of analyst estimates.

While last month, Asos 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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