Mike Ashley’s Frasers Group has acquired a 19% stake in online electrical retailer AO World, worth £75 million.
According to reports, Frasers purchased shares from hedge fund Odey Asset Management, following misconduct allegations surrounding its founder Crispin Odey.
The company said in a statement: “We, the executive committee of Odey Asset Management LLP, are announcing that Crispin Odey is leaving the partnership, adding that he will “no longer have any economic or personal involvement in the partnership”.
AO was featured as a case study in the RXUK’s 2023 Top500 research, click here to download.
“As of today, he will no longer have any economic or personal involvement in the partnership.
“Odey Asset Management Group Ltd will also cease to be a member and the partnership will now be owned and controlled by the remaining partners and managed as an independent legal entity.
“The firm has been investigating allegations concerning Odey, but cannot comment in detail as it is bound by legal obligations of confidentiality.”
The hedge fund offloaded its stake in AO earlier this week (9 June 2023).
“We are delighted to have the opportunity to form a supportive, strategic partnership, Ashley said.
“AO is a fantastic business with a clear strategy which is leading the market in online-only electricals.”
The news comes as Frasers Group has increased its stake in Asos for the second time this week as speculation over a takeover of the embattled online fashion retailer continues.
The group, owned by Mike Ashley, has now acquired 9.9% of shares in the company, up from 7.4% last week.