Frasers Group PLC (LSE:FRAS) now owns 5% of online fashion retailer ASOS, according to reports, making it the online retailer's fourth-largest shareholder.
Various reports over the weekend suggest that Mike Ashley’s company informed ASOS of its stakebuilding on Friday, something it was required to do after increasing its holding to 5%.
An official announcement to the London Stock Exchange is expected soon.
Frasers, which announced this morning it also upped its share in Hugo Boss, first acquired a slice of ASOS earlier this year.
Analysts at Shore Capital noted earlier this month that ASOS, the FTSE 250 retailer, could be a potential buy-out target as a result of the weaker pound.
So far this year, Frasers has been on a buying spree, building small stakes in other retailers, including Hugo Boss and ASOS.
Additionally, it has acquired fashion companies Missguided and ISawItFirst.
Last week, ASOS reported a sharp decline in pre-tax profits, down 89% on the previous year to £22mln.
Shares in ASOS moved higher, up 3% to 525p.