ASOS Shares Rise After Selling Topshop Stake to Heartland

Dow Jones09-05

By Anthony O. Goriainoff

ASOS shares rose after the company said it has agreed to sell an interest in its Topshop and Topman brands to Heartland via the formation of a joint venture.

Shares at 0737 GMT were up 0.57 pence, or 14%, at 4.66 pence.

The London-listed online fashion retailer said Thursday that Heartland will buy a 75% interest in the joint venture for 135 million pounds ($177.5 million), of which ASOS will receive 118 million pounds. The sale represents a 180 million-pound valuation for both brands, it said.

The company said proceeds will be used to strengthen its balance sheet.

ASOS said it expects the deal to have a negative impact on earnings before interest, taxes, depreciation and amortization in the 10 million to 20 million pounds range in 2025.

The retailer said the stake sale aligns with its renewed focus on allocating capital more efficiently, allowing it to participate in the brands' future growth potential, and that it intends to relaunch Topshop.com within six months of completion.

ASOS added that it was launching a refinancing under which it will issue around 250 million pounds in convertible bonds due in 2028, and will also purchase up to 200 million pounds of an outstanding 500 million pounds convertible bonds due in 2026. This will reduce debt to 150 million pounds from 200 million pounds currently.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

September 05, 2024 03:45 ET (07:45 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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Goriainoff \n</p>\n<pre>\n \n</pre>\n<p>\n  ASOS shares rose after the company said it has agreed to sell an interest in its Topshop and Topman brands to Heartland via the formation of a joint venture. \n</p>\n<p>\n  Shares at 0737 GMT were up 0.57 pence, or 14%, at 4.66 pence. \n</p>\n<p>\n  The London-listed online fashion retailer said Thursday that Heartland will buy a 75% interest in the joint venture for 135 million pounds ($177.5 million), of which ASOS will receive 118 million pounds. 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Goriainoff \n\n\n \n\n\n  ASOS shares rose after the company said it has agreed to sell an interest in its Topshop and Topman brands to Heartland via the formation of a joint venture. \n\n\n  ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4094","symbol_name":"服装零售","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2465514450","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2465514450","pubTimestamp":1725522300,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"ASOS shares rose after the company said it has agreed to sell an interest in its Topshop and Topman brands to Heartland via the formation of a joint venture.Shares at 0737 GMT were up 0.57 pence, or 14%, at 4.66 pence.The London-listed online fashion retailer said Thursday that Heartland will buy a 75% interest in the joint venture for 135 million pounds , of which ASOS will receive 118 million pounds. 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