Turkish retailer Trendyol eyes ASOS - Indoors Beauty

Turkish retailer Trendyol eyes ASOS

Turkish retailer Trendyol eyes ASOS

Turkish quick style retailer Trendyol, which has the backing of Chinese e-commerce large Alibaba, is reported to be contemplating a £1 billion bid for ASOS.

According to The Sunday Times, Trendyol made an method to ASOS in December with its potential supply that will have valued the enterprise at between £10 and £12 a share. Shares in ASOS have been up about 14% in early buying and selling this morning at 400p.

No dwell talks are underway between the 2 events so there isn’t any requirement for them to make official declarations on the matter at this stage.

It is reported that Trendyol is working with Morgan Stanley on the mooted bid. The Turkish firm has gross sales of £2.6 billion however is claimed to be loss-making. In 2021 it acquired backing of round £285 million from Alibaba, in addition to round £1.2 billion from traders together with SoftBank and the Qatar Investment Authority.

The information has emerged shortly after ASOS raised £75 million from a share placement and secured a brand new long-term £275 million financing facility, changing a earlier association that was because of expire subsequent 12 months, to fund its turnaround programmed, referred to as ‘Driving Change’.

Led by CEO José Antonio Ramos Calamonte, the Driving Change agenda shifts the main target of ASOS from short-term top-line development to long-term profitability.

ASOS revealed gross sales dropped 7% to £1.84 billion within the six months to twenty-eight February 2023 whereas pre-tax losses widened to £290.9 million (2022: £15. 9 million).

The loss was largely right down to a write-off of £128.2 million price of inventory and £49.4 million of non-cash property impairments because of closure prices regarding the discount is dimension of its HQ and logistics footprint.

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