Newcastle United owner Mike Ashley's Frasers Group havr sold their stake in fashion brand French Connection following talk of a takeover.
Frasers Group - formerly known as Sports Direct International - bought their stake of almost 25% in 2017 as part of a growth plan which has seen similar investments in brands like Hugo Boss.
However, French Connection told investors on Friday that the firm had received interest from two groups hoping to complete a takeover. The update led to shares soaring by about 65% that afternoon.
French Connection then confirmed on Monday that Frasers Group - which had been the second-largest shareholder in the business - has now sold its entire 24.93% stake.
Ashley's -led company have sold their holding of almost 97 million shares in a move which could once again result in share prices rising for the fashion brand.
French Connection, which was valued at around £28 million on Monday morning, received one approach from retail investor Spotlight Brands, with backing from restructuring and investment firm Gordon Brothers.
Spotlight has backed British brands including fitness-focused Sweaty Betty, while Gordon Brothers acquired the Laura Ashley brand last year following its administration.
French Connection said it also received another potential proposal from brand investment platform Go Global Retail.
The fashion brand was founded by Stephen Marks in 1972 but has seen sales impacted by the turmoil on the high street in recent years, with the coronavirus pandemic adding to its woes.
In December, French Connection said it had seen "encouraging" sales after some stores were able to reopen, before the latest national lockdown came into force in January.
Shares in French Connection were 15.9% higher at 29.8p in early trading.
