Dec 6, 2022
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OvalX finance platform buys 5% stake in N Brown

Dec 6, 2022

A spread-betting company has become the latest investor to see value in buying a big chunk of shares in fashion retail group N Brown

JD Williams

The purchase of a 5% holding by OvalX (formerly known as ETX Capital) comes after a holding of a similar size was bought by ever-acquisitive Frasers Group.

The trading platform has recently bought the stake in the owner of the Simply Be, JD Williams and Jacamo brands, Businesslive reported.

It's an unusual move for the financial services business that provides financial derivatives as its main area of operations. But it clearly sees the company as offering value given the share price is at a low level at present. 

Shares in N Brown reached a high of almost £6 each eight years ago. But they’ve declined steadily since then, and at their low point just after the pandemic-induced crash in spring 2020, they were less than 10p each. At present, the share price is just over 25p, valuing the company as a whole at almost £118 million.

OvalX hasn't commented on its interest in the retailer.

Meanwhile, Frasers Group first bought a stake in the business in October with a 4.54% holding, which last month it lifted to 5.04%. 

Although the company is known for buying businesses outright, it's also known for acquiring strategic stakes in other firms, and has stakes in companies as diverse as Hugo Boss, Mulberry, and ASOS. It looks like its N Brown buys are also about “making strategic investments to develop relationships and partnerships with other retailers, suppliers and brands”.

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