Frasers Group PLC (LSE:FRAS), the owner of brands like Sports Direct and Flannels, has lifted its stake in Boohoo Group PLC (AIM:BOO) to over 25%, consolidating its position as its top shareholder.
Mike Ashley’s company lifted its stake in the online fashion retailer from 24.04% to 25.02% on Friday, as part of a “strategic investment” across the industry.
Frasers began picking up shares in Boohoo back in June 2023, despite a downturn in the online shopping industry and a growing debt pile at the London-listed retailer.
Back in February, the Jack Wills owner became Boohoo’s largest shareholder after it reached a 22% stake.
Speculation has been growing as to whether chief executive Michael Murray is building a stake in Boohoo ahead of a potential takeover after he described the investments as “mid-flight”.
Frasers has also developed stakes in retailers and brands such as Hugo Boss, AO World, Asos, Currys and Hornby as well as having acquired bike retailer Wiggle and luxury fashion seller Matches.
Speaking on Fraser’s investment plans, Murray said: “All I can do is talk about how it looks very obvious afterwards.
“Flannels was an acquisition, and now it seems normal that Flannels is a part of Frasers Group. And Game, you think: why would you buy 30% of Game? Afterwards, it’s all very obvious.”