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Frasers Group Raises Hugo Boss Stake to 48% After Extended Bid
Frasers Group has lifted its holding in Hugo Boss to 48 percent after prolonging its €38-per-share cash offer, a bid the German fashion house urged shareholders to dismiss as undervaluing the company.
The cash tender of €38 ($43.96) per share was initially met with resistance from Hugo Boss's board, which told investors the price did not reflect the company's value or potential. The board argued that the offer carried only a 4% premium to the undisturbed share price, suggesting it was not a genuine takeover attempt but rather a strategy by Frasers to increase its existing stake.
Frasers, controlled by British billionaire Mike Ashley, has adopted an activist role since its first investment in Hugo Boss, pressing for changes at a company that has faced persistent weakness in womenswear and soft demand in China. The retail group has long sold Hugo Boss products across its stores and online.
Under chief executive Daniel Grieder, Hugo Boss is undergoing a reset aimed at improving financial performance through store closures and a streamlined product assortment. This marks Grieder's second turnaround effort since taking the helm in 2021. Bloomberg Intelligence noted that second-quarter results did not point to a sustained strategic reset, making Frasers' offer more compelling.
During the initial acceptance period, only about 7% of Hugo Boss shareholders tendered their shares. The slow uptake prompted Frasers to extend the offer window to August 13. Last year, Frasers CEO Michael Murray, Ashley's son-in-law, joined Hugo Boss's supervisory board; however, Hugo Boss said Murray abstained from any review or decision-making related to the offer to avoid potential conflicts of interest.