Frasers Group, the retail conglomerate behind Sports Direct, has formally launched a takeover bid for the German luxury fashion house Hugo Boss.
The offer, valued at approximately €1.98 billion (£1.73 billion), aims to secure the remaining shares of the business, building on Frasers’ existing 26 per cent stake.
Shareholders in the fashion firm are being offered €38 per share, a premium on Wednesday’s closing price of €36.44.
This move follows years of market speculation regarding Frasers’ intentions, with the group steadily increasing its investment in Hugo Boss since 2020.
As a direct result of this significant holding, Frasers’ chief executive, Michael Murray, holds a position on Hugo Boss’s supervisory board.
Bosses at Frasers stressed that Mr Murray “did not participate in the board’s discussion of, or decision to make, the offer”.
The offer is now expected to go to a shareholder vote.
The UK retail giant, which has a current market value of around £3.45 billion, said it would hope to complete the deal in the second half of this year if it is approved and receives regulatory approvals.
In a statement, Frasers said: “Hugo Boss is a key brand partner for Frasers, and one of the top five brands across the Frasers Group.
“Frasers is a long-term investor in Hugo Boss and remains supportive of both Stephan Sturm, the chair of the supervisory board, and Daniel Grieder, chief executive, in pursuit of their sustainable growth strategy whilst continuing to build brand equity.
“Frasers’ board of directors believes that increasing Frasers’ investment in Hugo Boss will create value for Frasers’ shareholders.”