20th Jun 2023 10:53
(Alliance News) - Frasers Group PLC, having already dipped into fast fashion and electrical goods with stakes in Asos PLC and AO World PLC, continued its shopping spree in recent days.
The Sports Direct owner continued its streak of buying up shares in UK retail outfits, with regulatory filings showing it has taken up a position in boohoo group PLC and Currys PLC.
Frasers owns 5.0% of boohoo, according to a document on Tuesday. The announcement on Tuesday came hours after a filing showed Frasers has built an 8.9% stake in London-based electronics and electrical goods retailer Currys PLC.
Filings on Monday showed Frasers built a 4.3% stake in Currys last week Thursday. It increased it to 8.9% on Monday.
"These deals are part of Frasers' broader intelligent strategy to acquire and build stakes in other businesses with the goal of positioning itself as a consumer platform for the world's best brands to provide 'a world-leading retail ecosystem'. Electricals and white goods could become key components of Frasers' expansion plans," interactive investor analyst Victoria Scholar commented.
On Friday, online electricals retailer AO World PLC said Frasers increased its stake to 21% from 19%. Frasers last week Monday had just bought the 19% stake.
Frasers said the investment in AO was the "culmination of productive talks over the last two years about establishing a strategic partnership".
On Thursday, online fashion retailer Asos said Frasers increased its stake to 10.6% from 9.9%.
The streak of stake-buying is not dissimilar to strategy previously fashioned by Frasers. The company development a reputation for rescuing struggling firms. House of Fraser, Evans Cycles and Jack Wills are among the brands it has rescued from financial strife.
Frasers shares traded 0.4% higher at 715.00 pence each in London on Tuesday morning.
By Eric Cunha, Alliance News news editor
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