Crisis-hit Hedge Fund Odey Asset Management Offloads Stake in AO to Frasers Group

Odey Asset Management, a crisis-hit hedge fund, has offloaded its 19% stake in AO, a London-listed electrical goods retailer, to Frasers Group, a high street retailer founded by Mike Ashley.

The transaction cost £75m and was confirmed by other shareholders.

Odey has been a supportive investor in AO since its stock market debut in 2014 and increased its holding as part of a capital-raise last year.

The sale of its stake suggests that Odey may be unable to stall a fire-sale of assets amid sexual misconduct allegations against its founder.

The Financial Conduct Authority is also said to be investigating Odey Asset Management.