Boohoo co-founder buys stake in Mysale following Frasers Group investment

The co-founder of British fashion giant Boohoo has snapped up a stake in Mysale just weeks after Frasers Group offered to buy the Australian-based fashion marketplace.

Mahmud Kamani, who founded Boohoo in 2006 alongside Carol Kane, bought over 45 million Mysale shares on August 31, giving him a 4.76 percent stake in the business, according to filings at the London Stock Exchange.

The news comes after Boohoo rival Frasers Group made an open offer to buy Mysale last month after snapping up a 28.7 percent stake in the business in June.

The group, whose portfolio of brands includes Flannels, Sports Direct, House of Fraser, and Jack Wills, offered a price of 2 pence per share, valuing the share capital of Mysale it did not hold at approximately 13.6 million pounds.

Frasers Group eyes Mysale acquisition

Frasers Group said the acquisition would help it increase its presence in Australia and the surrounding regions, and would also allow it to clear end of line products via Mysale's established clearance channel.

So far this year, acquisition-hungry Frasers Group has bought fast fashion rivals I Saw It First and Missguided, as well as British value retailer Studio Retail.

The group swung to a pre-tax profit of 344.8 million pounds in the year to April 24 from a loss of 39.9 million pounds a year earlier, with revenue excluding acquisitions up 30.1 percent to 4.75 billion pounds.

Its robust performance came as it benefited from shoppers flocking back to physical stores following the end of lockdown restrictions.

Based on its results, Frasers Group upped its FY23 outlook, though it warned that the “significant increase in general running costs” amid rising inflation and widespread supply chain challenges could persist.