UK's Frasers boosts Hugo Boss stake over 30% mandatory bid threshold
Frasers Group Increases Stake in Hugo Boss: Key Developments
July 21 (Reuters) - British retailer Frasers said on Tuesday that it has raised its holdings in Hugo Boss to about 30.28%, crossing a key regulatory threshold in its takeover pursuit of the German fashion house.
Details of the Share Acquisition
Here are some more details:
- Frasers acquired a further 2.55 million Hugo Boss shares, taking its stake above the 30% limit following which companies are required to make a mandatory takeover bid under German takeover rules
- Frasers, Hugo Boss' biggest shareholder, earlier held a 26.06% stake in the firm
Takeover Offer and Response
- The British company in June proposed to take over Hugo Boss for €38 per share, or roughly €2 billion ($2.28 billion), an offer the German group urged its shareholders to reject, saying it was "financially inadequate"
- Frasers said on Tuesday its offer remains open, with the initial acceptance period running until July 27
- Hugo Boss told Reuters that Frasers Group's increased shareholding "does not have any implications for the voluntary takeover offer or the offer process."
Outlook and Financial Implications
- Frasers last week withheld its fiscal 2027 outlook, saying ongoing takeover bids for Hugo Boss and Australian footwear retailer Accent made it difficult to forecast the year ahead
Currency Exchange Rate
($1 = 0.8757 euros)
(Reporting by Anushka Chourasia in Bengaluru; Editing by Mrigank Dhaniwala)
