- Simone Preuss |
After Mike Ashley’s Frasers Group bought a 5.1 stake in German label Hugo Boss in mid June - corresponding to 3.55 million shares and 97 million pounds - the British retailing group, which owns House of Fraser, Flannels, Jack Wills and Evans Cycles, has now doubled its stake in Hugo Boss.
According to a short notice published on Monday, the Frasers Group now owns 552,500 shares of common stock, 2,249,601 shares of common stock via contracts for difference and 4.26 million shares of common stock via the sale of put options, representing 0.8 percent, 3.2 percent and 6.1 percent of Hugo Boss’s total share capital, respectively.
The Frasers Group now has a 10.1 stake in Hugo Boss and owns more than 7 million shares. After taking into account the premium it will receive under the put options, the Frasers Group's maximum aggregate exposure in connection with its acquired interests in Hugo Boss is approximately 204 million euros (around 186 million pounds).
“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,” said the Group.
The UK sportswear giant Sports Direct Plc rebranded as Frasers Group at the end of last year as part of its elevation strategy. Buying a stake in Hugo Boss is part of the company’s efforts to become more high-end and ultimately becoming the ‘Harrods of the high street’ according to CEO Mike Ashley.
Photo: Hugo Boss Facebook