Mike Ashley's Frasers takes control of Hugo Boss with a 50.08% stake
UK retailer Frasers Group has raised its holding in Hugo Boss to 50.08%, turning the German fashion brand into a subsidiary whose earnings will be consolidated into Frasers' accounts. Boss says day-to-day operations will not change significantly.
Frasers Group, the UK retail empire of billionaire Mike Ashley, said on Friday, 23 October, that it had taken control of Hugo Boss after a fresh share purchase lifted its stake to 50.08% from about 48%, Bloomberg reported via BoF. According to Frasers’ stock exchange filing, it now holds 34,468,065 Boss shares.
A long build-up
Frasers, which owns Sports Direct, Flannels and House of Fraser, first invested in Boss in 2020. In June it launched a €38-a-share takeover offer, which Boss advised shareholders to reject as undervaluing the company. Last month Frasers chief executive Michael Murray, Ashley’s son-in-law, was named chairman of the German company, after supervisory board chairman Stephan Sturm departed.
What changes
Boss earnings are expected to be consolidated into Frasers’ results. A Hugo Boss spokesperson said the higher stake did not entail significant changes to influence or day-to-day operations. Frasers has also been pushing into luxury, with stakes in Mulberry and Burberry and the August acquisition of Harvey Nichols out of administration.
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