Odey Asset Management, whose owner has been accused of sexual harassment, sold Frasers Group an AO share on Friday.
The crisis-stricken hedge fund Odey Asset Management has sold its stake in the London-listed electrical goods retailer AO. Indicating that it may be unable to prevent a fire-sale of assets in the wake of allegations of sexual misconduct against its founder.
Mike Ashley’s Frasers Group bought roughly 19% of AO from Crispin Odey’s company.
The transaction cost Mr. Ashley’s Frasers Group £75 million, the company said in a Friday night statement.
The identity of Odey Asset Management as the seller was validated by other shareholders.
According to an insider, Odey has been a supportive investor in AO since its début on the London stock market in 2014 and increased its holdings as part of a capital raise last year.
It sold Frasers its entire investment in a fund managed by one of its senior portfolio managers, James Hanbury.
This weekend, it was unclear whether Mr. Hanbury was liquidating additional positions.
A spokesperson for Odey declined to remark on the issue or the number of client redemptions the company was experiencing.
Odey Asset Management said this week it “cannot comment in detail on the various allegations being investigated by our solicitors.”
The allegations, which Mr. Odey told the newspaper he refuted, have prompted several investment institutions that provide his company with so-called prime brokerage services to sever ties with it.
According to reports, the Financial Conduct Authority has widened its investigation into the hedge fund.
Odey Asset Management said this week it “cannot comment in detail on the various allegations being investigated by our solicitors.”
“OAM has in place robust policies and procedures to ensure that the company always complies with all legal and regulatory requirements”.
Staff wellness is also fundamental to the business culture at OAM.
The Financial Times’ portrayal of the company is unrecognizable.
It added that it was “in active discussions with all service providers, and we are confident that our service providers will continue to work with us to protect investors’ interests.
Mr. Ashley’s acquisition of AO exemplifies the type of opportunistic business for which he has become renowned.
“We are delighted to have the opportunity to form a supportive, strategic partnership,” said Frasers CEO Michael Murray, his son-in-law.
“AO is a fantastic company with a clear strategy that dominates the online-only electricals market.”
The acquisition of its AO stake adds the company to Frasers’ inventory of minority holdings, which also includes the struggling online fashion retailer ASOS and the luxury handbag retailer Mulberry.
It is plausible that either Liberum or Numis, Frasers’ brokers, executed the trade on behalf of Mr. Ashley’s company.
Both AO and Frasers refused to comment.
