Asos surges as largest shareholder Anders Holch Povlsen ups stake

(Sharecast News) - Asos shares surged on Thursday after largest shareholder Anders Holch Povlsen upped his stake in the online fashion retailer to just below the level that triggers a mandatory takeover offer. According to a regulatory filing late on Wednesday, Danish billionaire Povlsen - who is also the second largest shareholder in Zalando and owner of clothing chain Bestseller - upped his stake from 27.1% to just over 28%.

In the UK, when a person or group has acquired 30% or more of a company's voting rights, this triggers an obligation to make a mandatory offer to the remaining shareholders.

Mike Ashley's Frasers Group is the second-biggest shareholder in Asos.

Asos shares closed up 10.9% at 255p.

Danni Hewson, head of financial analysis at AJ Bell, said: "A Danish billionaire increasing his stake in Asos has got tongues wagging that he might be preparing a takeover offer for the group. Anders Povlsen has been a long-standing shareholder in Asos but buying an additional chunk of stock is out of the ordinary and that's why the share price has burst to life.

"It puts his shareholding within a whisker of the 30% level that triggers a mandatory takeover offer.

"The Danish billionaire has already ceded control of Topshop which has been the subject of a flurry of speculation that it might just make a welcome return to UK high streets.

"There's something about an old favourite, a brand that has so much clout and shared memory that the mere whiff of a revival sparks headlines.

"Currently only available via the Asos website after the online retailer snapped up the fashion favourite in 2021, a couple of teasing posts on social media, and a website URL which tells you to 'stay tuned because your favourite brand is about to get a destination of its very own', have created a buzz. Judging by the response to Boohoo's decision to push Debenhams back into the limelight, there's a lot to be said for bygone brands.

"The market lost faith in Asos years ago and the share price has remained weak, but a Topshop revival could change all that. There's also the possibility that Povlsen might feel that Asos is better taken off the market and nursed back to health out of the public spotlight."