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Frasers Group boosts stake in Hugo Boss to 48%
The increase follows a June offer of about €2bn, which the Hugo Boss board rejected as inadequate and urged shareholders not to accept.
Mike Ashley’s Frasers Group increased its stake in German luxury fashion house Hugo Boss to 48%, after previously launching a takeover attempt, according to The Guardian Business.
The stake rise came after 17.6% of Hugo Boss shareholders accepted Frasers’ offer, which was priced at €38 per share. Frasers had made a nearly €2bn bid in June, reflecting only a 4% premium at the time, and Hugo Boss’s board rejected it as inadequate, urging shareholders not to accept.
The Guardian Business reports that analyst Axel Rudolph of IG said the higher stake is another step toward gaining control of Hugo Boss. Frasers already has experience selling Hugo Boss products in its stores and has pushed for changes since first taking a stake in June 2020 amid sluggish women’s clothing sales and weaker demand in Hugo Boss’s key Chinese market.
Frasers also recently expanded through the purchase of Harvey Nichols out of administration, following the chain’s warning it could run out of money without new funding. If Ashley ultimately gains control of Hugo Boss, it would add another brand to the group’s portfolio, which includes Frasers department stores, Sports Direct, and Evans Cycles.