Mike Ashley's Frasers Group has doubled its stake in electrical retailer Currys. Stock market filings showed the Derbyshire-based sportswear-to-homewares group had upped its stake in the out-of-town retailer to 8.9 per cent.
Only last week Frasers – parent firm of brands such as Sports Direct, House of Fraser, Game, Sofa.com and Flannels – bought a £75 million stake in online white goods retailer AO World, which is one of Currys’ big rivals. That acquisition is understood to have included shares previously owned by crisis-hit hedge fund Odey Asset Management.
Shares in Frasers Group PLC – in which Mr Ashley has a controlling stake of about 70 per – were up marginally today at 714p, while Currys was down half a per cent at 52.66p.
Russ Mould, investment director at online stockbroker AJ Bell, said it was another interesting move by the Ashley group.
He said: “Frasers was among the top FTSE 100 risers after last night saying it had more than doubled its position in Currys to 8.89 per cent by selling put options on the stock.
“The retailer recently built up a 21.3 per cent stake in AO, thereby giving it exposure to the electricals sector and the investment in Currys via financial instruments continues this theme.”
Frasers has a history of investment partnerships in other retail brands, such as Asos and Hugo Boss.
Following last week’s AO deal, Michael Murray, chief executive of Frasers, said: “Frasers has long admired what John and the AO team have built and we are delighted to have the opportunity to form a supportive, strategic partnership.
“AO is a fantastic business with a clear strategy which is leading the market in online-only electricals.”
John Roberts, founder and chief executive of AO, said: “This is great news for AO and a fantastic endorsement for our business.
“As we continue to build on our strategy of pivoting to profitable growth, it will be hugely exciting to have a range of compelling strategic opportunities to explore together and we’re very much looking forward to working with Michael and his team.”
