LONDON (ShareCast) - (Sharecast News) - Mike Ashley's Frasers Group has lifted its stake in AO World just days after announcing a strategic tie-up with the online electrical retailer.
Frasers now owns 21% after buying a 19% stake for £75m on Monday. The owner of Sports Direct, House of Fraser, Evans cycles and other retail fascias, said it bought 109.4 million shares at 68p each largely from Odey Asset Management, which has been hit by a scandal involving founder Crispin Odey.

Bolton-based AO World was founded in 2000 as Appliances Only by John Roberts, and is now the biggest seller of large domestic appliances in the UK.

Ashley's group is now the second-largest shareholder in AO, after Camelot Capital Partners, with a 20.4% stake and Roberts the third largest shareholder, at 18.3%. Odey Asset Management has 5.2% holding.

"Frasers has long admired what John and the AO team have built, and we are delighted to have the opportunity to form a supportive, strategic partnership," said Frasers chief executve Michael Murray on Monday.

"The investment is the culmination of productive talks over the last two years about establishing a strategic partnership," AO World said in a statement.

Murray added that AO "is a fantastic business with a clear strategy which is leading the market in online-only electricals".

"Through this investment, Frasers will benefit from AO's valuable know-how in electricals and two-man delivery, helping us to drive growth in our bulk equipment and homeware ranges. In turn, AO will have the opportunity to benefit from Frasers' expertise and ecosystem."

Frasers bought most of the shares from Odey Asset Management, currently dealing with the departure of its founder Crispin Odey after allegations of sexual misconduct from multiple women, which he has denied.



Reporting by Frank Prenesti for Sharecast.com

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