Mike Ashley’s Frasers Group increases shares in Hugo Boss

By guest author Sahar Nazir from Retail Gazette

  • Mike Ashley’s Frasers Group increases shares in Hugo Boss
  • Frasers Group now owns 3.6m of common stock, representing 5.1 % of Hugo Boss’ total share capital
  • The group also owns 3.3 million shares via contracts for difference, which represents 4.8 % of Hugo Boss’ shares
Caption courtesy by Retail Gazette

Mike Ashley’s Frasers Group has increased its shares in Hugo Boss by up to 15.2 %.

The move has been made through stocks and derivatives and means Frasers Group now owns 3.6 million of common stock, representing 5.1 % of Hugo Boss’ total share capital.

The empire also owns 3.3 million shares via contracts for difference, which represents 4.8 % of Hugo Boss’ shares, and 3.7 million shares via the sale of put options, amounting to 5.3 % of the retailer’s share capital.

Frasers Group, which owns Sports Direct and House of Fraser, said that after taking into account the premium it will receive under the put options, its maximum aggregate exposure to Hugo Boss is approximately EUR 275 million (GBP 245 million).

“This investment reflects Frasers Group’s growing relationship with Hugo Boss and belief in Hugo Boss’s long-term future,” Frasers Group said.

“Frasers Group intends to be a supportive stakeholder and create value in the interests of both Frasers Group’s and Hugo Boss’ shareholders.”

The share increase comes as Frasers Group snapped up fashion retailer Psyche after a buyout deal was agreed this month.

Frasers Group bought out the retailer’s stores as well as its online operations.

However, Frasers Group issued a profit warning in December after scrapping its guidance of a 20 % to 30 % rise in profits.

The restrictions – which affect London and southeast of England – is expected to impact the business, with many stores forced to close.

www.frasersgroupplc.com

www.retailgazette.com