Mike Ashley's Frasers Group has made an unsolicited €1.98bn (£1.73bn) offer to buy all of German fashion brand Hugo Boss, sending a signal of intent from the retail empire that has steadily built up a stake of just over a quarter since 2020. The offer, at €38 a share — above Wednesday's closing price of €36.50 — was announced on Wednesday, with Frasers saying it expected the deal to be completed by the end of this year provided it passes all legal checks. The move brings Frasers close to the 30% ownership threshold under German law that obliges a shareholder to bid for the whole company.
Hugo Boss said it would "thoroughly examine the offer and issue a reasoned statement", adding that the approach had "not been coordinated with the company" and that it would inform shareholders and the public about further developments. Frasers, which also owns House of Fraser, Game, Jack Wills and Evans Cycles, described itself as "a long-term investor" in Hugo Boss and said it "remains supportive" of its chair and chief executive. The group, formerly known as Sports Direct, has built a reputation for snapping up struggling retailers out of administration, but its gradual accumulation of shares in profit-making Hugo Boss marks a different strategy.
“Frasers Group offers £1.73bn to buy all of Hugo Boss, already owning over a quarter of the German fashion brand.”
Ashley, a controversial figure who founded the group and remains its largest shareholder, has previously faced criticism over working conditions at Sports Direct factories and once called unhappy investors "cry babies". His son-in-law is now chief executive of Frasers. The group is also the largest shareholder in Boohoo, but relations have been frosty: last year, Boohoo tried to rename itself as Debenhams Group, but Frasers used its voting power to block the formal name change. Boohoo's chief executive, Dan Finley, told the BBC earlier this week that the company would "operate to all intents and purposes as Debenhams Group", adding he did not know why Frasers blocked the resolution.