Key facts
- Frasers Group now owns 47.89% of Hugo Boss.
- The stake is worth over €1 billion.
- Frasers acquired an additional 17% of Hugo Boss shares.
- The initial takeover bid from Frasers was rejected by Hugo Boss's board.
- Frasers recently purchased Harvey Nichols for £40 million.
Frasers Group, owned by Mike Ashley, has significantly increased its stake in the German fashion house Hugo Boss, now holding nearly 48% of the company. This move follows the rejection of Frasers' initial takeover bid by Hugo Boss's board, which had deemed the offer inadequate. Frasers acquired an additional 12,157,598 shares, representing over 17% of the firm, for more than €463 million. The total value of Frasers' stake in Hugo Boss now exceeds €1 billion.
Analysts had previously noted the modest premium offered in Ashley's bid. The increased stake is part of Frasers' broader strategy to expand its influence in the luxury retail sector. This initiative includes the recent acquisition of the struggling department store chain Harvey Nichols for £40 million, which Frasers plans to integrate with its luxury brand, Flannels.
Following the initial rejection of its takeover bid, Frasers had reportedly considered installing its CEO, Michael Murray, as the chief executive of Hugo Boss. This strategy mirrors a previous unsuccessful attempt by Frasers to place Ashley on the board of online retailer Boohoo after building a significant stake in that company.