The crisis-hit hedge fund Odey Asset Administration has offloaded its stake in AO, the London-listed electrical objects retailer, suggesting that it might be unable to stall a fire-sale of property amid a wave of sexual misconduct allegations in the direction of its founder.
Sky Information has learnt that the company prepare by Crispin Odey was the seller of virtually 19% of AO to Frasers Group, the extreme street retailer based mostly by the billionaire tycoon Mike Ashley.
The transaction worth Mr Ashley’s Frasers Group £75m, it talked about in an announcement on Friday night time time.
Odey Asset Administration’s identification as the seller was confirmed by completely different shareholders.
One insider talked about that Odey had been a supportive investor in AO since its stock market debut in London in 2014, and had elevated its holding as part of a capital-raise remaining yr.
It’s believed to have offloaded its full stake, held in a fund managed by James Hanbury, one amongst its senior portfolio managers, to Frasers.
This weekend, it was unclear whether or not or not Mr Hanbury was throughout the technique of liquidating completely different positions.
A spokesman for Odey declined to the touch upon the issue or on the extent of customer redemptions the company was experiencing.
The catastrophe has been triggered by a torrent of sexual abuse and harassment allegations made throughout the Monetary Instances in the direction of its eponymous founder.
The claims, which Mr Odey suggested the newspaper he disputed, have prompted numerous funding banks which provide so-called prime broking suppliers to his company to sever ties with it.
The Monetary Conduct Authority will also be talked about to have broadened an current investigation into the hedge fund.
In an announcement this week, Odey Asset Administration talked about it “can’t remark intimately on the assorted allegations that are being appeared into by our legal professionals”.
“OAM has strong insurance policies and procedures in place to make sure that the agency always complies with all of its authorized and regulatory obligations.
“Workers wellbeing is central to the custom of OAM’s enterprise.
“We don’t recognise the image of the agency that has been painted by the Monetary Instances.”
It added that it was “in lively discussions with all service suppliers and we’re assured that our service suppliers will proceed to work with us to make sure that the pursuits of traders are protected”.
For Mr Ashley, the swoop on AO represents the type of opportunistic commerce for which he has develop to be renowned.
The previous Newcastle United FC proprietor has prolonged coveted a stake throughout the enterprise, and his son-in-law, Michael Murray, who now runs Frasers, talked about in an announcement: “We’re delighted to have the chance to kind a supportive, strategic partnership”.
“AO is a implausible enterprise with a transparent technique which is main the market in online-only electricals.”
The purchase of its AO stake supplies the company to an inventory of minority holdings for Frasers which includes ASOS, the struggling on-line development retailer, and Mulberry, the luxurious purse retailer.
Both Liberum and Numis, Frasers’ brokers, are liable to have been involved in executing the commerce on behalf of Mr Ashley’s agency.
AO and Frasers every declined to comment.
