// Frasers Group acquires 19% stake in electricals retailer AO World
// The Mike Ashley-owned retail empire purchased shares from London-based hedge fund Odey Asset Management
Frasers Group has taken a 19% stake in Bolton-based online electrical retailer AO World, worth £75 million.
It is understood that Mike Ashley’s retail empire purchased shares from London-based hedge fund Odey Asset Management which is currently the center of misconduct allegations surrounding its founder Crispin Odey.
On Saturday the partnership said Odey was leaving the business, adding he will “no longer have any economic or personal involvement in the partnership”.
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The statement said: “As from today, he will no longer have any economic or personal involvement in the partnership.
“Odey Asset Management Group Ltd will also cease to be a member and the partnership will now be owned and controlled by the remaining partners and managed as an independent legal entity.
Ashley, who has been on a roll adding retailers to its empire is keen to build a stake in AO.
Michael Murray, who now runs Frasers Group, 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. Through this investment, Frasers will benefit from AO’s valuable know-how in electricals and two-man delivery, helping us to drive growth in our bulk equipment and homeware ranges. In turn, AO will have the opportunity to benefit from Frasers’ expertise and ecosystem.”
AO chief executive John Roberts said: “This is great news for AO and a fantastic endorsement for our business. We are delighted to welcome Michael and the wider Frasers team into the AO family and look forward to realising the significant potential that we see for this partnership. 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.”
The news comes as Frasers Group has raised its stake in Asos for the second time this month as speculation over a takeover of the embattled online fashion retailer mounts.
READ MORE: Is a takeover on the cards for Asos?
The Mike Ashley owned group now holds 9.9% of shares, up from 7.4% at the start of the week.
Ashley’s actions has raised fresh questions over Asos, which was valued at more than £7bn just over two years ago and a possible takeover as its shares hit a 12-month low, leaving it at a value of £400m.
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