Boohoo Excludes Frasers from Shareholder Meetings

Online fashion retailer Boohoo has barred Frasers Group from attending its shareholder meetings. This move comes after Frasers Group, owned by Mike Ashley, increased its stake in Boohoo to over 12%.

Frasers Group’s Increased Stake

Frasers Group recently increased its stake in Boohoo to more than 12%, making it one of the largest shareholders. Despite this, Boohoo has decided to exclude Frasers from its shareholder meetings, a move that has sparked controversy.

Boohoo’s Justification

Boohoo has justified its decision by stating that Frasers Group’s intentions are not aligned with the company’s long-term interests. The online retailer believes that Frasers is attempting to gain control over the company without paying a premium for it.

• Frasers Group has been buying shares in Boohoo since 2020.

• Boohoo’s decision to exclude Frasers from shareholder meetings is seen as an attempt to protect its independence.

Implications for Boohoo and Frasers Group

The decision to exclude Frasers Group from shareholder meetings could have significant implications for both companies. For Boohoo, it could lead to a potential legal battle. For Frasers Group, it could hinder its plans to expand its influence in the retail sector.

Summary

In a controversial move, Boohoo has barred Frasers Group from attending its shareholder meetings, despite the latter’s increased stake in the company. Boohoo believes that Frasers Group’s intentions are not in line with its long-term interests. This decision could lead to significant implications for both companies, including a potential legal battle.