Billionaire Mike Ashley’s retail empire Frasers Group Plc raised its stake in online fashion chain Boohoo again since first investing in June, arguably taking advantage of the company’s depressed valuation. The move comes after Frasers last week disclosed a higher stake in Boohoo rival Asos, stoking takeover speculation.
(Bloomberg) — Billionaire Mike Ashley’s retail empire Frasers Group Plc raised its stake in online fashion chain Boohoo again since first investing in June, arguably taking advantage of the company’s depressed valuation. The move comes after Frasers last week disclosed a higher stake in Boohoo rival Asos, stoking takeover speculation.
Here’s the key business news from London this morning:
In The City
Boohoo Group Plc: Frasers raised its stake in the Manchester-based company to 9.1% from 7.8%. Boohoo’s shares have dropped 44% since their March peak.
Grafton Group Plc: The construction firm said first-half profit before tax plunged 30% and warned the remainder of the year will remain challenging against the backdrop of high inflation and cost-of-living pressures.
- Still, Grafton confirmed its full-year profit guidance and announced a new share buyback program worth up to £50 million
Persimmon Plc: The homebuilder’s pending exit from the FTSE 100 Index after a decade-long stay is the latest sign of how the highest UK interest rates since the global financial crisis are crushing the country’s property-related stocks.
- Other stocks leaving the FTSE 100 Index with Persimmon are Abrdn Plc, Hiscox Ltd. and Johnson Matthey Plc, while those being promoted are Dechra Pharmaceuticals Plc, Diploma Plc, Hikma Pharmaceuticals Plc and Marks & Spencer Group Plc
In Westminster
UK officials should consider lifting the Bank of England’s inflation target from 2% once rampant price growth is brought under control, according to one of Chancellor Jeremy Hunt’s advisers.
Meanwhile, Britain’s biggest business group said a year-long slump across the private sector is likely to continue for at least three more months, as high inflation and interest rates hold back growth.
In Case You Missed It
Six months after taking over at Shell Plc, Chief Executive Officer Wael Sawan quietly ended the world’s biggest corporate plan to develop carbon offsets, the environmental projects designed to counteract the warming effects of CO2 emissions.
Digital health firm Babylon’s UK business has been rescued by a US provider of in-home testing kits as part of an insolvency process.
Looking Ahead
Fresh house price data comes out tomorrow morning. “While mortgage rates may now be edging lower, they are set to remain higher for longer,” Bloomberg economists say, maintaining their view that prices will drop by about 10% from last year’s peak.
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