- Huw Hughes |
Mike Ashley’s Frasers Group has taken a 5.1 percent stake in German label Hugo Boss through stocks and derivatives as it continues its plan to become more high-end.
The group, which owns House of Fraser, Flannels, Jack Wills and Evans Cycles, said the decision reflects its growing relationship with Hugo Boss as well as its belief in its long-term future.
’Harrods of the high street’
It marks the latest move by Frasers to reposition itself as a more upmarket company. Previously, Ashley has said he wants Frasers to become the “Harrods of the high street”.
In February, the group acquired a 12.5 percent share in luxury British handbag label Mulberry. The company at the time: “A key strategic priority for Frasers Group is the elevation of our retail proposition and building stronger relationships with premium third party brands.”
Frasers said it has now purchased 120,000 shares of common stock in Hugo Boss, 140,000 shares of common stock via contracts for difference, and 3,29 million shares of common stock via the sale of put options.
The company said that after taking into account the premium it will receive under the put options, its maximum aggregate exposure in connection with its acquired interests in Hugo Boss is around 97 million pounds (108 million euros).
“This investment reflects Frasers Group's growing relationship with Hugo Boss and belief in Hugo Boss' long-term future. Frasers Group intends to be a supportive stakeholder and create value in the interests of both Frasers Group's and Hugo Boss' shareholders,” Frasers said in a statement.
Photo credit: FashionUnited