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A battle for control of Asos is brewing between two retail tycoons after Danish billionaire Anders Holch Povlsen moved closer to a takeover of the fast fashion retailer.
Mr Holch Povlsen and his family have increased their stake in Asos to just over 28pc, according to new filings.
The billionaire, who made his money in Danish retail and is now the biggest private landowner in Scotland, has cemented his position as Asos’s largest shareholder and moved closer to the takeover threshold.
City rules dictate that any investor with a stake of more than 30pc in a business must make a formal takeover offer.
It sets the stage for a looming tug of war with rival retail billionaire Mike Ashley, who is Asos’s second largest shareholder. His retail empire Frasers Group holds a 24pc stake in Asos and has also been increasing its investment, stoking speculation that Mr Ashley could be preparing for a takeover swoop.
The pair have also already clashed at Asos. In 2023, The Telegraph revealed that Frasers had offered to invest more into Asos in return for closer cooperation between the two businesses, including Asos using its buy-now-pay-later service Frasers Plus. Asos ultimately snubbed the offer in favour of an alternative investment backed by Mr Holch Povlsen.
It prompted frustration at Frasers, with executives questioning the “thinking and decision making” at Asos in a letter to executives.
The two moguls have butted heads at other times in the past. In late 2020, Mr Ashley and Mr Holch Povlsen clashed over the collapse of Jenners, one of Scotland’s oldest department stores. Both blamed each other for the retailer’s demise.
Last year Asos agreed to sell a majority stake in Topshop to Mr Holch Povlsen for £135m in a move that was also viewed as a snub to Mr Ashley. Nick Bubb, a retail analyst, said at the time that he expected Mr Ashley to be “displeased” with the deal.
The Sports Direct tycoon had long been interested in Topshop and Frasers was among the potential suitors when owner Arcadia collapsed into administration in 2020.
Mr Holch Povlsen is a self-made retail mogul who built his family clothing and accessories business Bestseller into a multibillion-euro company. It owns brands such as Jack & Jones, Only and Vero Moda.
The Dane is worth an estimated £6.7bn.
Frasers has also built a portfolio of brands, with Mr Ashley well-known for his dealmaking. Frasers owns brands including Gieves and Hawkes, Sofa.com and Jack Wills. It has also been building up stakes in a host of retailers including Boohoo and AO World.
News of the stock purchase sent shares in Asos jumping 13pc on Thursday. The company is still down around 40pc since the end of January.