SerpApi.Org
Mike Ashley’s Frasers has upped its stake in Hugo Boss after the retail billionaire tabled a £2.3bn takeover bid for the German fashion house.
Frasers confirmed on Tuesday that it had bought a further 3.7pc of the shares in Hugo Boss, taking its stake above 30pc, the legal threshold for launching a formal takeover offer under German stock market rules.
The FTSE 100 retailer announced an offer last month to acquire the remaining share capital of the German luxury label as it indicated it would continue to build its holding.
The board of Hugo Boss rejected Mr Ashley’s initial approach at €38 (£32) per share earlier this month, insisting the bid was “inadequate” and undervalued the brand.
In a market announcement on Tuesday morning, Frasers said it was “pleased to confirm that it has exceeded the mandatory bid threshold of 30pc as provided for in the German Takeover Code”.
“The offer of €38 per Hugo Boss share remains open for shareholders to accept.”
Frasers has previously said its bid was final. It is the lowest offer Frasers was able to make under Frankfurt’s market rules. Hugo Boss shares have traded between €37.90 and €38 in recent weeks, following Frasers’ approach.
Shareholders in Hugo Boss, which is promoted by Sir David Beckham and Naomi Campbell, have until July 27 to accept the proposed deal. The German brand’s stock has halved over the past three years.
Stephan Sturm, Hugo Boss’s chairman, described the bid earlier this month as “financially inadequate and [it] fails to appropriately reflect Hugo Boss’s value and future potential”.
The increase in its stake represents the latest piece of empire-building for Mr Ashley’s Frasers, the group that also controls Sports Direct and Jack Wills.
Mr Ashley controls 74pc of Frasers, formerly known as Sports Direct before a takeover of House of Fraser that saved the department store from collapse.
The billionaire has spent recent years building up a portfolio of fashion, sportswear and luxury brands.
Frasers has become one of the most active buyers of struggling retailers, acquiring House of Fraser in 2018 after the department store chain collapsed into administration, before adding brands including Missguided and I Saw It First.
The group has said it wanted to create a “house of brands” spanning different parts of the consumer market, from its core Sports Direct business through to higher-end fashion labels.
Mr Ashley has also built stakes in a number of retailers and consumer businesses, often positioning Frasers as a potential buyer or strategic partner as companies face pressure from changing consumer habits and rising costs.
