Frasers revealed it now has interests 3,611,700 shares of common stock, representing 5.1% of Hugo Boss’s total share capital and 3,377,465 shares of common stock via contracts for difference, representing 4.8% of Hugo Boss’s total share capital.
Finally it also now has 3,735,000 shares of common stock via the sale of put options, representing 5.3% of Hugo Boss’s total share capital.
The company said that after taking into account the premium it will receive under the put options, Frasers Group’s maximum aggregate exposure in connection with its acquired interests in Hugo Boss is approximately £245m.
“This investment reflects Frasers Group’s growing relationship with Hugo Boss and belief in Hugo Boss’s long-term future. Frasers Group intends to be a supportive stakeholder and create value in the interests of both Frasers Group’s and Hugo Boss’ shareholders,” it said.
Frasers Group has been increasing its stake in a number of retailers over the past year. Most recently it increased its stake in Mulberry from 12.9% to 29.7%.
At the time, Frasers said the move was part of a “strategic priority” to build closer relationships with “premium third-party brands”.