Key facts
- Frasers Group now holds 47.89% of Hugo Boss.
- The additional stake acquired represents over 17% of Hugo Boss shares.
- Frasers Group spent over €463 million on the additional shares.
- Hugo Boss's board rejected Frasers' initial takeover bid as inadequate.
- Frasers Group recently acquired Harvey Nichols for £40 million.
Frasers Group, the retail empire controlled by Mike Ashley, has significantly increased its stake in German fashion house Hugo Boss to 47.89%. This move follows Frasers' acquisition of over 17% of Hugo Boss's shares for more than €463 million, a development that analysts suggest is a major step towards gaining control. The increased shareholding comes after Hugo Boss's board rejected Frasers' initial takeover bid of €38 per share as inadequate.
Frasers' expanded stake is part of a broader strategy to bolster its presence in the luxury fashion market, which includes the recent £40 million acquisition of department store chain Harvey Nichols. Hugo Boss's chair, Stephan Sturm, acknowledged Frasers Group's continued long-term commitment and expressed anticipation for a constructive relationship with the company as its single largest shareholder.
Analysts noted the surprising success of the bid, particularly given the seemingly token nature of the initial offer. Frasers has been an increasingly activist investor in Hugo Boss since first taking a stake in June 2020, aiming to address challenges such as struggling sales in women's clothing and sluggish demand in the Chinese market.