Mike Ashley ups stake in THG
Retailer Mike Ashley has increased his stake in THG PLC, crossing an ownership threshold last week which gives his Frasers Group a holding worth 4.777% of THG’s voting rights.
In other news THG has appointed Milyae Park as an independent Non-Executive Director.
She has previously worked in digital and ecommerce transformation at Tesco and Marks & Spencer.
But it’s the move by Ashley which has caught the eye this morning, coming just weeks after THG demerged its Ingenuity division last year, a deal which Ashley backed as part of multi fronted partnership.
Frasers owns stakes in other retailers including AO, Boohoo, ASOS, Hugo Boss, Currys and Mulberry. In the case of Boohoo, Ashley has fought an often bitter battle to exert influence and seek a seat on the board.
But the relationship with THG seems to have got off to a good start. It was surprise twist to the never dull story of THG’s life on the markets, that the business welcomed an initial £10m strategic investment from Frasers when it made moves to formalise the split of Ingenuity from THG.
THG sees positive possibilities in the links between the two colourful boardroom characters, which THG claims is “further underscoring their commitment to its multi-year strategic partnership with THG”.
In June 2024 Frasers agreed to stock a range of Myprotein products at Sports Direct and to link THG customers to their own affinity scheme.
The £10 million investment from Frasers is in addition to approximately £75 million of net proceeds raised to provide IngenuityCo with sufficient medium-term funding.
Whether Ashley will look to extend and deepen as a major shareholder, it should be able to command an audience with the people running these businesses, and that provides an opportunity to try and sell them its buy now, pay later proposition.
THG also sold its luxury division, including the retail brand Coggles to Frasers for £43m and said it would continue to provide ecommerce and fulfilment services through its Ingenuity platform.
