Frasers Group, led by Mike Ashley, is allegedly evaluating the acquisition of Hugo Boss. On Friday, May 21, 2021, the stock price of the German brand grew by nearly 7% in Frankfurt, after the rumor got out. Boss, which is 15.2% owned by Ashley already, is evaluated at 3.2 billion euro. Last month the same stock reached another peak, after indiscretions over potential buyers started spreading.
Frasers Group’s actions
Up until last January, Frasers Group owned 10.1% of Hugo Boss’ capital. The percentage later went up to 15.2% after the purchase of a large package of shares. “This investment reflects the relationship between Frasers Group and Hugo Boss and the trust in the long-term future of the brand”, stated the British group at the time, after the group had defined itself as a “supportive shareholder”. Now, according to The Telegraph, Mike Ashley, has changed its approach and is reflecting on whether to acquire the majority of Hugo Boss. Evaluation: over 3.2 billion euro. The indiscretion, concrete or not, had an immediate effect: the German brand’s share price increased by almost 7% at the Frankfurt Stock Exchange.
Who is buying it?
Hugo Boss has been at the center of speculation for a long time now. The Times had published, about a month ago, a report according to which the German brand could attract the interest of large fashion groups or PE funds. In that instance as well, Hugo Boss’ shares reached a peak value that hadn’t been touched in the 12 prior months.
Image taken from hugoboss.com
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