Mike Ashley’s Frasers Group has snapped up a £3 million stake in Marks Electrical in its latest investment deal.

Online white goods retailer Marks saw shares move higher in early trading on Tuesday as a result.

In a stock market filing, Marks revealed that Frasers has bought 6.73 million shares in the business.

The deal will give Frasers a 6.4% stake in the Leicester-based retail firm.

Nevertheless, the company is still under the majority control of founder Mark Smithson, who had retained a stake of more than 70% in the business.

Earlier this month, Marks Electrical revealed lower half-year profits after customers traded down to cheaper products amid pressure on their household budgets.

Adjusted earnings slipped to £2 million for the six months to September 30, from £2.3 million over the same period a year earlier.

It came despite revenues growing by 9.3% to £58.8 million for the half-year.

The investment from Frasers came after Marks shares dropped to their lowest level since floating in London in 2021 last week.

It is the latest acquisition deal by Frasers in the electricals space, after building up a roughly 23% stake in rival AO World in recent years.

A spokesman for Marks Electrical said: “The board welcomes Frasers as a shareholder in Marks Electrical.

“Their investment represents a vote of confidence and also demonstrates the significant upside potential in our business as we focus on building the UK’s leading premium electrical retailer and delivering long term value creation.”

Shares in the company were 1.3% higher at 51.15p.