Frasers increases stake in Asos for the third time in two weeks

Mike Ashley’s sprawling retail group increased its stake in Asos from 9.9% to 10.6% as the online fashion giant returned to profitability in its third-quarter results.

Asos reported adjusted EBIT “up more than £20m year on year” and said it was “on track” to achieve guidance of between £40m and £60m in the second half as its turnaround strategy paid off.

Asos has been at the centre of takeover talks ever since news of a £1bn buyout bid from Alibaba-backed Turkish fast-fashion platform Trendyol broke.

Frasers owned a 7.4% stake in Asos at the beginning of last week and has since then increased its stake three times in two weeks. With a stake higher than 10%, Frasers has strengthened its position as a shareholder and could put a stop to would-be buyers’ ambitions by refusing to sell.