FRASERS GROUP LAUNCHES £1.73BN TAKEOVER BID FOR HUGO BOSS

Frasers Group has formally launched a takeover bid for German luxury fashion house Hugo Boss, valuing the company at approximately €1.98 billion (£1.73 billion). The offer targets the remaining shares in Hugo Boss that Frasers does not already own, with shareholders being offered €38 per share. That price represents a premium on Hugo Boss's closing share price of €36.44 on Wednesday. The offer is expected to proceed to a shareholder vote.

Frasers, the retail conglomerate that owns Sports Direct and Flannels, already holds a 26 per cent stake in Hugo Boss and has been increasing its investment in the German fashion brand since 2020. Michael Murray, Frasers' chief executive, holds a seat on Hugo Boss's supervisory board as a result of that significant holding. Frasers stated that Murray did not participate in the board's discussions or the decision to make the offer. In a statement, Frasers described Hugo Boss as "a key brand partner" and "one of the top five brands across the Frasers Group."

Frasers, which carries a current market value of around £3.45 billion, said it hopes to complete the acquisition in the second half of this year, subject to shareholder and regulatory approval. The company expressed support for Hugo Boss supervisory board chair Stephan Sturm and chief executive Daniel Grieder and their growth strategy. Frasers' board stated that increasing its investment in Hugo Boss would create value for Frasers shareholders.