Frasers Group takes 19% stake in AO World
Frasers Group has purchased an 18.9% stake in online electrical retailer AO World, buying out shares held by Odey Asset Management for £75 million.
The owner of House of Fraser, Flannels and Sports Direct, is now the second-largest shareholder in AO World, behind Camelot Capital Partners and ahead of Roberts.
The move comes as Odey Asset Management faces misconduct allegations surrounding its founder Crispin Odey.
Michael Murray, CEO of 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.
"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.”
Last week, Frasers Group increased its stake in ASOS to 9.9%, making it the third-largest shareholder, ahead a potential battle for control of the online fashion business.
The news also comes after a number of recent business moves by Frasers Group. Earlier this year, the group acquired a variety of "non-core UK fashion brands", including Giulio, Tessuti and Cricket, from JD Sports. Prior to this, the group purchased Gieves & Hawkes, Australian luxury footwear brand Sneakerboy, and fast fashion brands I Saw It First and Missguided.
