Frasers Group Tables £1.73 Billion Bid for Full Ownership of Hugo Boss

Frasers Group, the retail conglomerate founded by businessman Mike Ashley, has formally tabled an offer to purchase the entirety of German luxury fashion brand Hugo Boss. The proposed acquisition, which values Hugo Boss at €1.98 billion (£1.73 billion), follows Frasers' strategic accumulation of a stake exceeding 25% since 2020.

Hugo Boss confirmed receipt of the "unsolicited" proposal, stating it was not coordinated with their management. The fashion house indicated it would conduct a thorough examination of the offer and subsequently issue a reasoned statement to its shareholders and the public.

The offer prices Hugo Boss shares at €38, a premium to the €36.5 closing price on Wednesday. Frasers Group, which encompasses brands such as House of Fraser, Game, and Jack Wills, anticipates the completion of the takeover by the close of 2024, contingent on regulatory and legal approvals.

This move marks a divergence from Frasers' established practice of acquiring distressed retail assets, instead targeting a profitable entity. The sustained increase in shareholding has brought Frasers close to the 30% threshold, under German law, that necessitates a full takeover bid for the company.