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Frasers Group increases stake in Hugo Boss to 15.2%

Lauretta Roberts
20 January 2021

Mike Ashley's Frasers Group has increased its "strategic investment" in luxury fashion brands Hugo Boss and now owns 15.2% of its shares.

This is the second time the group has upped its stake in Hugo Boss, having initially taken a stake of 5.1% last June and pushing that up to 10.1% later on in the same month.

In a statement to the stock market, Frasers said: "This investment reflects Frasers Group's growing relationship with Hugo Boss and belief in Hugo Boss's 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 revealed that it now held 3.6 million shares of common stock, representing 5.1% of Hugo Boss’s total share capital. It also has 3.4 million shares via contracts for difference and 3.7 million shares via the sale of put options, which together represent 10.1% of the Frankfurt-listed fashion house’s share capital.

It added that its maximum aggregate exposure relating to the stake change was around €275m after taking into account the premium it will receive under the put options.

Frasers also holds a large strategic stake in UK-based luxury house Mulberry, having recently upped its stake to 36.8%. Normally taking more than 30% in a listed company would trigger a takeover bid but Mulberry already has a majority shareholder in the form of Challice, the investment vehicle for Singapore’s Ong Family, while owns around 56% of the business.

The stock market rules required Ashley to declare his intentions for Mulberry, however, and Frasers confirmed it was not intending to make a bid in the short term.

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