ASOS PLC (LON:ASC) has confirmed it is in exclusive discussions with the administrators of Arcadia over the acquisition of the Topshop, Topman, Miss Selfridge and HIIT brands.
The online retailer said the deal represents “a compelling opportunity to acquire strong brands that resonate well with its customer base”, however at this stage, there is no certainty the talks will end up in a transaction.
READ: Next scraps Topshop buyout offer
The AIM-listed firm said it would use its own cash reserve to complete the potential acquisition, which Sky News reported could be priced at £250mln.
How the might have fallen - Boohoo buys Debenhams brand & website for £55m; Asos in talks to buy Topshop & co. Both deals would be funded by their existing cash piles - which says something about how much money they're making, and how low the prices are.
— Jon Yeomans (@JonLYeomans) January 25, 2021
Last week Next PLC (LON:NXT), which had partnered with US hedge fund Davidson Kempner for a Topshop purchase, pulled out of talks, meaning Chinese online platform Shein was understood to be the frontrunner for Topshop with a £300mln offer.
Arcadia folded with an estimated £350mln pension black hole that owner Philip Green is under pressure to plug, and is now being managed by administrators at Deloitte, who were expecting the final bids last Monday. Up to 13,000 jobs are at risk.
Last month, Arcadia's fashion brand Evans was sold to Australian firm City Chic Collective for £23mln, although the deal did not include the plus-sized clothier’s store network but just the brand, its customer base and inventory.
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