Frasers Group increases stake in Hugo Boss to more than 50%
Hugo Boss will become a subsidiary of British retailer Frasers Group after the latter increased its stake in the company to more than 50%, strengthening its position as Hugo Boss’s majority shareholder
Frasers Group has acquired an additional 198,666 shares for around 7.6 million euros, increasing its total holding to approximately 34.5 million shares, or 50.8% This purchase was financed using the group’s existing cash resources.
As a result, Hugo Boss’s earnings, assets, and liabilities are expected to be included in Frasers Group's financial accounts.
The group also has the right to purchase up to an additional 15.05 million Hugo Boss shares through sold put options, representing a further potential 21.87% stake in the company.
Reuters reports that Hugo Boss has acknowledged the latest increase in ownership, but does not anticipate that crossing the 50% threshold will have significant implications for the company.
This move follows Frasers’ unsuccessful 2 billion euros takeover offer in June, which Hugo Boss rejected as inadequate from a financial perspective.
Image Credits: retail-insider.com
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