Frasers to make fresh proposal after Boohoo shareholders reject Ashley

(Sharecast News) - Frasers Group responded to the outcome of Boohoo's Friday shareholder vote on Monday, after it saw the rejection of the proposed board appointments of Frasers' Mike Ashley and restructuring expert Mike Lennon to the Boohoo board. Almost 64% of shareholders voted against each candidate during the general meeting, marking a decisive stance from Boohoo's independent investors.

In a statement on Monday, Frasers said it respected the views of Boohoo's shareholders, and acknowledged the company's invitation to propose an alternative candidate.

Frasers said it would nominate a "highly qualified" individual in due course, emphasising its expectation that Boohoo's board would adhere to its commitment to consider the new proposal without delay.

The shareholder vote followed weeks of tension between the two companies.

Frasers, Boohoo's largest shareholder with a 28% stake, has been vocal about its influence on the retailer's direction.

Earlier in the year, Frasers advocated for the replacement of Boohoo's chief executive officer with Ashley - a move that preceded the November appointment of Dan Finley as Boohoo's new chief executive.

Finley, formerly of Debenhams, had outlined plans to unlock shareholder value and reposition the business, which he described as "materially undervalued".

At 0820 GMT, shares in Frasers Group were down 1.39% at 617.78p, while those in Boohoo Group were down 0.14% at 33.09p.

Reporting by Josh White for Sharecast.com.