Shares of Frasers Group PLC (LON: FRAS) on news that Mike Ashley’s company has placed a £30 million takeover offer for DW Sports.
According to the Sunday Times, Frasers Group has made an offer to the administrator of DW Sports, owned by former Wigan Athletic owner Dave Whelan. DW Sports currently owns 73 gyms and 75 stores.
This news doesn’t come as a surprise given that Ashley has a history of trying to buy companies that have financial difficulties. In the past, the owner of Newcastle United bought Jack Wills, Evans Cycles, and House of Fraser, with all of them experiencing financial difficulties.
Moreover, Ashley is still trying to take over 30 stores from its UK retail rival Debenhams. Ashley failed two times in acquiring Debenhams in the past.
Frasers Group share price gained over 2% on reports. The stock is trading around 290p after hitting a 3-month low earlier this month.