March 5 (Reuters) - British sportswear and fashion retailer Frasers owns a near 6% stake in German sportswear brand Puma, a filing showed on Thursday. (Reporting by Prerna Bedi in Bengaluru; Editing
Mike Ashley's Frasers takes near 6% stake in struggling sportswear brand Puma
Frasers' Investment and Puma's Current Market Position
March 5 (Reuters) - Billionaire Mike Ashley's Frasers has become the second-largest shareholder in sportswear brand Puma after taking a near 6% stake in the German company, a filing revealed on Thursday.
Shares in Puma were up more than 6% as of 1140 GMT, while Frasers was marginally higher.
Puma's Financial Struggles and Competitive Landscape
The German company, which suspended its dividend amid annual losses last week, has been struggling to capture market share amid stiff competition from legacy peers Nike and Adidas as well as newer players like On Holding.
Frasers' Strategic Approach to Investments
Frasers has in the past used its minority shareholdings in companies as leverage to push for strategic changes, or encourage them to sell its products or adopt its services. It declined to comment on the shareholding.
Frasers' Broader Retail Investments
The British company already has substantial investments in multiple retailers, including Debenhams, ASOS, and AO World.
Puma is a major supplier to Sports Direct, which accounts for the bulk of Frasers' profits.
Recent Developments in Puma's Shareholding
The stake disclosure comes more than a month after China's biggest sportswear brand and Fila owner Anta Sports Products agreed to buy a 29% stake in Puma for 1.5 billion euros ($1.74 billion) from Kering shareholder Artemis.
Anta's Ambitions and Board Representation
Anta had suggested it would seek a board seat at the German brand when it laid out plans to become the largest shareholder in January.
Exchange Rate Information
($1 = 0.8612 euros)
(Reporting by Prerna Bedi in Bengaluru, Helen Reid in London; Editing by Shailesh Kuber and Jan Harvey)
