Frasers Group increases exposure to Asos

Sports Direct’s parent company has increased its financial commitment to Asos. According to a regulatory filing, Frasers Group has purchased additional "sold put options", increasing its total exposure in the e-commerce company to 29.26 percent.

Frasers currently holds 23.33 percent of direct shares, making it one of Asos' largest shareholders. The remaining 6.6 percent of exposure is held via derivative instruments. The acquisition of more "sold put options" may allow Frasers to purchase more shares in the future.

The retail group, founded by Mike Ashley, has been quietly upping its control over Asos since 2022, when it initially snapped up a 5.1 percent stake, making it a majority shareholder. At the time, Asos had launched a turnaround plan responding to lacklustre trading in the year prior, which had resulted in a dip of share value.

Frasers had said its ultimate goal was to potentially form a future partnership with Asos, a mission that had been adopted more broadly at the group, as it sought to establish strong ties with brand partners. Asos is just one of many struggling e-tailers Frasers has expressed interest in, with the group having previously acquired the likes of Missguided, now sold to Shein; Studio Retail; and I Saw It First.

Updated 15:00 CET, March 24 to reflect Frasers clarifying that its voting stake remains at 23.2 percent and the additional exposure is held via derivatives.