Mike Ashley’s Frasers buys £3m stake in Marks Electrical
In a stock market filing, Marks revealed that Frasers has bought 6.73 million shares in the business.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Mike Ashley’s Frasers Group has snapped up a £3 million stake in Marks Electrical in its latest investment deal.
Online white goods retailer Marks saw shares move higher in early trading on Tuesday as a result.
In a stock market filing, Marks revealed that Frasers has bought 6.73 million shares in the business.
The deal will give Frasers a 6.4% stake in the Leicester-based retail firm.
Nevertheless, the company is still under the majority control of founder Mark Smithson, who had retained a stake of more than 70% in the business.
Earlier this month, Marks Electrical revealed lower half-year profits after customers traded down to cheaper products amid pressure on their household budgets.
Adjusted earnings slipped to £2 million for the six months to September 30, from £2.3 million over the same period a year earlier.
It came despite revenues growing by 9.3% to £58.8 million for the half-year.
The investment from Frasers came after Marks shares dropped to their lowest level since floating in London in 2021 last week.
It is the latest acquisition deal by Frasers in the electricals space, after building up a roughly 23% stake in rival AO World in recent years.
A spokesman for Marks Electrical said: “The board welcomes Frasers as a shareholder in Marks Electrical.
“Their investment represents a vote of confidence and also demonstrates the significant upside potential in our business as we focus on building the UK’s leading premium electrical retailer and delivering long term value creation.”
Shares in the company were 1.3% higher at 51.15p.