6th Nov 2024 14:25
(Alliance News) - Sports Direct owner Frasers Group PLC on Wednesday published an open letter in which it asked Manchester-based online fashion retailer boohoo Group PLC to confirm that it will not make any disposals of its assets without prior shareholder approval.
Frasers said the open letter was due to boohoo's board's "refusal to allow shareholders to vote on key decisions affecting boohoo, such as the chief executive officer appointment".
It added that prior to agreeing to any such disposal, the board should obtain and publish the confirmation of an independent global adviser or investment bank that the terms of the disposal are fair and reasonable, and that "the disposal has been conducted at arm's length and the disposal is in the best interests of boohoo's shareholders".
"Frasers firmly believes that the restriction on disposals without shareholder approval and the requirement for confirmation from an independent global adviser/investment bank are required in order to protect the interests of boohoo, its shareholders and its stakeholders," it said.
Frasers holds a stake of around 27% in boohoo.
On Friday, boohoo said it promoted the CEO Debenhams, Dan Finley, to the role of its own CEO with immediate effect. boohoo had acquired the online operations of Debenhams out of administration back in 2021.
Frasers had wanted to install its own founder Mike Ashley as boohoo CEO, however.
Frasers shares were 1.3% lower at 765.00 pence each on Wednesday afternoon in London, while boohoo shares rose 1.0% to 31.28p each.
By Tom Budszus, Alliance News slot editor
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