Ashley takes a £75m stake in AO World: Retail magnate buys out shares of Odey Asset Management
Mike Ashley’s Frasers Group has acquired an 18.9 per cent stake in AO World in a £75 million blow – buying out shares held by troubled Odey Asset Management.
The deal makes Ashley’s retail empire the second-largest shareholder in the online electricity giant.
It comes just a week after Frasers, owner of brands such as Sports Direct and Evans Cycles, increased its stake in Asos to nearly 10 percent.
Michael Murray, Frasers’ CEO and Ashley’s son-in-law, said the AO deal would allow the group to increase its online electronics offerings.
Based in Bolton, AO World specializes in the sale of household products ranging from refrigerators to washing machines and televisions.
Buyout: Mike Ashley’s Frasers Group is now the second-largest shareholder of online electricity giant AO World after acquiring an 18.9% stake
John Roberts, founder and CEO of the company, said, “This is great news for AO and fantastic support for our company.
“We look forward to realizing the significant potential we see for this partnership.”
Frasers is said to have bought shares of Odey Asset Management as the company continues to falter following the departure of founder Crispin Odey following allegations of sexual misconduct, which he denies.
Frasers said the deal comes after two years of talks with AO.
The retail empire, which Ashley has built from a single sports shop in Maidenhead, includes House of Fraser, Sports Direct, Jack Wills, Evans Cycles and menswear retailer Gieves & Hawkes.
And as of last week, Ashley owns 9.9 percent of Asos shares, raising new questions about the future of the online fashion retailer, which is seen as a takeover target after a share price plunge of more than 90 percent in a short period of time. more than two years.
Asos, whose ownership of the Topshop brand is considered particularly attractive, is valued at just over £400 million.
Analysts at Jefferies said Frasers’ interest in AO was “clearly more than opportunistic” and a vote of confidence in the electronics retailer’s prospects.
Shares of AO World have fallen since the peak of the pandemic, when consumers poured extra savings into new technology.
Commerce has been hit by stores reopening, rising costs and supply chain disruptions hampering sales.
The company subsequently exited the underperforming German market and cut many senior and middle management positions to reduce costs.
Shares of AO World rose 7.8 percent, or 5.45 pence, to 75 pence yesterday. Shares of Frasers Group were flat at 684.5p.