Asos has received a £1 billion takeover bid from Turkish online retailer Trendyol.
The firm, backed by Chinese giant Alibaba, put in an offer valuing the online fashion retailer at £10 to £12 a share in December last year, compared to its latest closing price of just £3.50.
According to The Sunday Times, Trendyol is understood to be working with Morgan Stanley on the bid, however, there are no talks currently underway.
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Trendyol is thought to have contacted Asos’ largest shareholder, Bestseller owner Anders Holch Povlsen, to see if he would participate in the deal.
However, Povlsen’s investment vehicle, Heartland, declined to comment on “rumours and speculation”.
The move comes as the online-only fashion retailer was dropped from the FTSE 250 index as shares hit a 12-month low.
The company was also forced to raise £75 million from investors following its dampening losses.
In the six months ended 28 February 2023, the group reported an adjusted loss of £69.4 million, compared with a profit and an adjusted profit before tax of £87.4 million.
Group revenue also dropped by 8% to £1.8 billion in the period, down from £2 billion in the same period last year.
