Key facts
- Frasers Group launched a $2.3 billion takeover bid for Hugo Boss.
- The offer is priced at €38 per share for the 74% of Hugo Boss Frasers Group does not own.
- Hugo Boss shares rose above the offer price, trading at €40.5.
- Frasers Group aims to increase its control over Hugo Boss, not necessarily seek 100% ownership.
- Hugo Boss's board will review the unsolicited offer and issue a reasoned statement.
Frasers Group has launched an unsolicited takeover bid of €1.98 billion ($2.3 billion) for Hugo Boss, offering €38 per share for the 74% of the German fashion brand it does not already own. The bid, which values the company at €2.7 billion, has seen Hugo Boss shares rise above the offer price, trading as high as €40.5.
Analysts at Oddo BHF described the approach as a potential 'low ball' move, suggesting the current valuation is depressed relative to historical levels and that many investors may not accept the offer. JP Morgan noted the bid likely sets a near-term floor for the shares but sees limited scope for further upside, not expecting a rival bidder to emerge.
Hugo Boss confirmed its board will review the offer, which was not coordinated with the company, and issue a reasoned statement. Frasers Group, controlled by billionaire Mike Ashley, already holds a significant stake in Hugo Boss and aims to increase its control, though reports suggest it is not seeking 100% ownership. The fashion house has been struggling with weaker sales and is pursuing a turnaround strategy.