Boohoo has announced that T Rowe Price, a US investment firm, has acquired a 10% stake in the company.
The deal makes the global investment group Boohoo’s third largest shareholder, overtaking Invesco and sitting just behind Jupiter Fund Management and co-CEO Mahmud Abdullah Kamani.
As of 13 July 2020 there were 1.259 billion Boohoo shares in issue, with 24.8% of shares not in public hands.
T Rowe Price’s Boohoo share purchase marks an expansion in the online fast fashion market, with the group already controlling a similar proportion of Asos’ shares.
While Bestseller remains Asos’ largest shareholder with a 26% stake in the firm, T Rowe Price comes in second owning 11.69% of shares.
The purchase comes after an announcement in August from Boohoo that the group plans to create 5,000 new jobs across the next five years following a £500m investment programme.
John Lyttle, CEO at the company, said at the time that the investments will support the group “to continue our growth, increasing our customer base both at home and abroad, adding even more value as we do so”.