Frasers Group has significantly reduced its investment in Currys, reflecting a shift in its strategic approach.
- Originally holding a 10.9% stake in Currys, Frasers Group has now decreased its shareholding to 2.8%.
- This move comes after Frasers initially labelled its investment in Currys as a ‘strategic investment’.
- Frasers had acquired a substantial 9% stake in Currys back in June of the previous year.
- The decision hints at a possible re-evaluation of the collaboration potential between Currys and Frasers.
Frasers Group, under the control of Mike Ashley, has notably lowered its shares in Currys, shifting from a 10.9% holding to a mere 2.8%. This adjustment marks a significant change in the investment strategy of Frasers, which barely over a year ago, had increased its stake in Currys by 9% as part of a ‘strategic investment’.
The acquisition of Currys shares in June of the prior year was described by Frasers as an opportunity to enhance its presence in the electricals sector. Furthermore, this investment was seen as a means to strengthen the relationship between Currys and other entities within the Frasers Group, particularly Studio, with ambitions for future collaboration.
Frasers Group’s investment was also anticipated to leverage its renowned retail expertise and advanced ecosystem to benefit Currys. However, with this reduction in shares, the future collaborative initiatives that were anticipated may be under reconsideration.
The reduction in investment aligns with reports from June indicating that Frasers was in discussions with Currys about integrating its credit offerings as an additional payment option.
Frasers Group’s decision to cut its stake in Currys signals a strategic shift, potentially altering future collaborations.
