// Frasers Group has revealed a strategic investment in Boohoo and Currys
// It comes just a week after Frasers unveiled a “strategic partnership” with fellow electricals retailer and Currys’ rival AO World
Mike Ashley’s Frasers Group has unveiled “strategic investments” in both Boohoo and Currys as its acquisition spree continues.
The group has snapped up a 9% stake in Currys and 5% in Boohoo over the past 24 hours, and said that “strategic investments is a core part of Frasers’ DNA”.
It said: “Under Michael Murray’s leadership, we continue to build on our long track record of establishing supportive shareholder positions in attractive retail companies.
“We have a clear strategy to identify opportunities to invest in businesses which complement our existing sport, premium and luxury businesses, or help us to build and further utilise our sector-leading ecosystem.
It explained that Boohoo is an “attractive proposition” through its “laser focus on young female consumers”.
The group said: “We see potential synergies and an opportunity to strengthen our own brand proposition in collaboration with Boohoo, most obviously with Frasers Group brands I Saw It First and Missguided.”
Meanwhile, it said its investment in Currys “provides us with a valuable opportunity to build on our foothold in the electricals industry as well as deepening the existing relationship between Currys and Studio, with the potential for further collaboration between the two”.
“Through this investment, we also believe Currys will benefit from Frasers’ deep retail know-how and our sector-leading ecosystem.”
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It comes only a week after Frasers unveiled a “strategic partnership” with fellow electricals retailer and Currys’ rival AO World, including a 19% shareholding in the group that it increased to just over 21% later in the week.
The group operates 826 stores in eight countries and according to the filings, Frasers’ holding in Currys is via financial instruments rather than a direct shareholding.
Retail titan Ashley has a controlling stake of about 70% stake in Frasers, formerly known as Sports Direct.
He built the group into a conglomerate that spans brands including House of Fraser, Flannels and Jack Wills. It also holds stakes in Asos, Hugo Boss and N Brown.
Last October the billionaire formally stepped down as a director at the group, handing day-to-day running to his son-in-law Michael Murray.
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