In less than 3 weeks, Mike Ashley’s Frasers Group has increased its stake in German fashion label Hugo Boss!
Earlier this month, Frasers Group had announced its decision to buy 5.1 per cent stake in Hugo Boss through stocks and derivatives.
And now another announcement was made yesterday (29 June)!
Frasers Group said that it has further increased its stake in the German label to 10.1 per cent through stocks and derivatives.
In its announcement, the Group distinctly stated that it now held 552,500 shares of common stocks – that’s 0.8 per cent of German fashion house’s total share capital.
While Frasers Group had 2,249,601 shares through contracts for difference (3.2 per cent of total share capital of Hugo Boss), it held 4,260,000 shares through sale of put options thereby representing 9.3 per cent of Hugo Boss’ share capital.
The Group also said that taking into consideration the premium it gets following the sale of put options, its maximum aggregate exposure was €204 million.
The investment by the Fraser Group has shown its complete faith in Hugo Boss’ future and also the Group’s intent to strengthen the relationship further with the German fashion label.
Hugo Boss is one of the largest German apparel brands with worldwide sales of €2.9 billion. Frasers Group, which was previously called Sports Direct International Plc, is UK’s largest retailer of sports items and has around 670 stores across the globes. It generates revenue of €3.701.9 million.