Companies

Asos shares rise on reports of a takeover bid by Alibaba-backed Turkish rival

Jun 7, 2023 United Kingdom

This news came after the fast fashion retailer's downgrade from London's FTSE 250 index of mid-sized companies, which reflects its declining performance in the post-pandemic period

Asos share prices rose by almost 10% on Monday after being known that the company reportedly received a bid of 1 billion US dollars (1.16 billion euros) from the Turkish rival Trendyol, backed by the Chinese Alibaba, in December. According to The Times newspaper, the now dropped acquisition would have valued Asos at between 10 British pounds (11.62 euros) to 12 British pounds (13.94 euros) per share.

The same city sources used by the newspaper also said that Trendyol approached Povlsen about this potential deal to see whether he would be interested in participating. The Danish Anders Holch Povlsen is currently Asos’s largest shareholder, with a 26% stake in the company. All parties have declined to comment.

The UK-based online retailer expanded rapidly during the COVID-19 pandemic but was later hit by supply chain issues, high product returns, increased competition and the cost-of-living crisis that has weighed on consumer spending. In May, Asos posted a first-half revenue decrease of 8% year-over-year to 1.84 billion British pounds (2.14 billion euros), and a loss of 218.2 million British pounds (253.5 million euros), as compared to the loss of 13.5 million British pounds (15.7 million euros) reported in the same period of last fiscal year.

1 British pound = 1.16 euro

Image Credits: jornaldenegocios.pt

United Kingdom Alibaba Asos Companies Online