Frasers builds stake in Burberry to become third largest shareholder
Frasers raised its Burberry exposure to 4.16% through sold put options on 15 million shares, making it the third-largest shareholder by exposure.
- On Tuesday, British retailer Frasers disclosed a 4.16% financial exposure in Burberry Group, positioning the conglomerate to become the luxury brand's third-largest shareholder.
- Controlled by billionaire Mike Ashley, Frasers expanded its stake from 3.05% as of July 24 by amassing sold put options on 15 million shares, providing economic interest without direct ownership.
- Following the disclosure, Burberry shares finished Tuesday roughly 5% higher, as LSEG data indicates Frasers now trails only MFS Investment and BlackRock Investment Management among the company's largest shareholders.
- Led by CEO Michael Murray, Frasers maintains a reputation for aggressive investments, including recent takeover bids for Hugo Boss and Accent, fueling speculation regarding potential boardroom activism.
- Burberry reported first-quarter sales grew 5 percent to 455 million pounds, though the brand continues navigating complex market conditions, including spending shifts in Europe and the Middle East.
12 Articles
12 Articles
The Frasers Group bought a stake in the traditional British luxury brand Burberry, as part of its strategy to expand its performance in the luxury market. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Mike Ashley’s Frasers circles Burberry in latest luxury swoop
Mike Ashley’s Frasers Group is eyeing up a holding in Burberry as its latest push into luxury fashion. Frasers has revealed that it holds the rights to a 4.2 per cent stake in the British fashion house, which would make Ashley’s group one of its biggest shareholders. The position is held through put options, which are financial contracts which give the owner the right to buy shares at a fixed price. If Frasers exercised these put options, it w…
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