Frasers Group tightens control over ASOS with near-30% stake amid stock slump
Frasers Group has strengthened its grip on ASOS by raising its stake to roughly 28.4% of voting rights. The move comes as the online fashion retailer faces a sharp decline in share value, with losses accelerating over the past month.
ASOS stock dropped another 2.5% on Friday, trading near its lowest point in a year at €2.69.
Frasers Group's expanded holding consists mostly of direct shares, though a small portion—just over 5%—is held via financial instruments such as sold put options. The company's growing influence contrasts with the retreat of other major investors.
Schroders, once a significant shareholder, recently cut its stake to 4.99%, slipping below the 5% threshold that requires public disclosure. This reduction follows a broader trend of declining confidence in ASOS, with shares shedding over 20% of their value in the last 30 days alone.
Analysts still see potential upside, setting a target price of 3.279 GBP—41% higher than the last recorded closing price of 2.325 GBP. Yet, the stock's recent performance suggests investors remain cautious about the retailer's prospects.
Frasers Group now holds a near-30% stake in ASOS, making it the dominant shareholder amid ongoing market turbulence. The retailer's shares continue to trade near yearly lows, with little sign of immediate recovery.
Investor sentiment remains weak, as reflected in both the stock's decline and the reduced positions of other major backers.
