A regulatory filing from Frasers Group shows the company expanded its financial interest in Burberry from 3.05% to 4.16%.
The entire position is held through sold put options linked to Burberry shares, rather than through a direct shareholding, and represents 15m voting rights in the brand.
The new position moves Mike Ashley’s Frasers Group behind the two largest shareholders MFS Investment Management and BlackRock Investment Management UK, according to LSEG data.
The retail group has increasingly used share purchases as a lead up to an eventual purchase offer as it has done recently with both fashion brand Hugo Boss and Australian footwear retailer Accent Group.
The retailer is currently bidding for the remaining shares in Hugo Boss that it does not already control, while also attempting to acquire Accent Group, which operates footwear chains including The Athlete’s Foot, Hype DC and Platypus.
Burberry recently reported stronger trading in the US and China during Q1. Burberry shares closed around 5% higher following news of Frasers’ increased position, while Frasers finished the session up 2.5%.
