**Frasers Group, the owner of Sports Direct, has increased its stake in British online retailer Asos to almost 20%, making it the company’s largest shareholder.**.
**Key Points:**.
* Frasers Group now owns 19.93% of Asos shares, up from 18.9% previously..
* The stake is valued at approximately £370 million ($497 million)..
* Frasers Group has been gradually increasing its investment in Asos since 2021..
**Background:**.
Frasers Group, led by controversial billionaire Mike Ashley, has a history of acquiring stakes in struggling retailers. In recent years, the group has invested in brands such as Debenhams, House of Fraser, and Game..
Asos, founded in 2000, is a leading global online retailer specializing in fashion and beauty products. The company targets young, fashion-conscious consumers and has a strong presence in the UK and international markets..
**Implications:**.
The increase in Frasers Group’s stake in Asos raises questions about the future of the online retailer. Some analysts speculate that Frasers Group could eventually launch a takeover bid for Asos, as it has done with other companies in the past..
However, Frasers Group has stated that it has no current plans to make an offer for Asos. Instead, the company has expressed its support for Asos’s management team and its turnaround strategy..
**Industry Reaction:**.
News of Frasers Group’s increased stake in Asos has been met with mixed reactions from industry experts. Some believe that Frasers Group could bring valuable retail experience and financial resources to Asos. Others are concerned about Frasers Group’s reputation for cost-cutting measures and its aggressive acquisition strategy..
**Financial Impact:**.
The rise in Frasers Group’s stake has had a positive impact on Asos’s share price. As of March 1, 2023, Asos shares are trading at £18.26, up from £17.61 at the start of the year..
**Conclusion:**.
Frasers Group’s increased stake in Asos is a significant development that could shape the future of the online retailer. While Frasers Group has stated that it has no current takeover plans, the move has raised speculation about the company’s long-term intentions. The outcome will be closely watched by investors, industry analysts, and fashion enthusiasts alike..
