// Turkish online retailer Trendyol made an approach to buy Asos in December 2022
// The retailer is also understood to have angered shareholder Frasers Group after it snubbed its offer of investment
Struggling Asos received a £1bn approach from Turkish online retailer Trendyol, which is backed by Chinese giant Alibaba, late last year.
The deal would have valued the etailer at between £10 and £12 a share, substantially higher than the £3.50 they are now valued at.
Trendyol is understood to have been working with Morgan Stanley on the bid, according to The Sunday Times, however there are no talks underway currently.
Trendyol, which raised $330 million (£265 million) from Alibaba in 2021, is thought to have contacted Bestseller owner Anders Holch Povlsen, Asos’ largest shareholder, about the deal to see if he would participate.
His investment vehicle, Heartland, declined to comment on what it termed “rumours and speculation”.
Asos was booted out of the FTSE 250 this week after the value of its shares plunged 93% in the past two years.
Credit insurers have also cut cover for the fashion retailer’s suppliers, with Allianz Trade withdrawing cover entirely last week due to the tough economic conditions and the etailer’s own finances.
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Removal of credit insurance can lead suppliers to demand upfront payment.
An Asos spokeswoman told The Sunday Times: “Credit insurance cover has been tightening across the industry. We have not seen any adverse impact on trading relationships with suppliers due to changes to cover.”
Asos was forced to raise £75m from investors via a share placing last month, when it also inked a £275m asset-based financing facility with specialist lender Bantry Bay, which is backed by activist US hedge fund Elliott.
The refinancing is understood to have angered Asos investor Frasers Group, which holds a 7% stake in the firm.
According to The Telegraph, Frasers CEO Michael Murray had contacted Asos executives prior to the refinancing and had offered to invest further in the online retailer for an additional 5% in the firm.
Frasers insisted this did not constitute a takeover attempt, however, the Asos board did not see it that way. Two days later it unveiled the fundraising supported by its largest shareholder Povlsen and its second largest, Camelot Capital Partners.
Angered by the refinancing, Frasers has written to Asos executives, according to the newspaper. The firm sent a letter that asked: “What was the thinking and decision making behind the refinancing of Asos’s existing RCF with an expensive loan and the selection of a lender backed by Elliott?”
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