Frasers Group said on 10 June it would offer €38.00 in cash for every Hugo Boss share it did not already own, valuing the German fashion group at about €2.7bn.
Why Frasers Group plc is buying HUGO BOSS AG
Frasers said it had chosen a voluntary offer to consolidate its investment in Hugo Boss; crossing the 30% threshold by other means would have required a mandatory offer to all shareholders. Jefferies analyst Frederick Wild described the bid as an attempt to raise the stake within the constraints of German takeover law.
Deal terms and financing
The cash offer covered all shares not directly held by Frasers, which then owned just over 26% directly and had also written put options. It carried no minimum acceptance threshold and was subject only to merger control clearances. The price was about 4% above the last Xetra close.
Regulatory approvals and timing
The offer document was published after BaFin approval. Hugo Boss's management and supervisory boards recommended shareholders reject the offer as inadequate. Acceptances after the additional period that ended on 13 August totalled about 17.6% of the share capital, lifting Frasers' holding to 47.89%.
Market context
Relations had been strained: Frasers withdrew its confidence in supervisory board chair Stephan Sturm in December, partly over the dividend, before backing him again shortly before the bid. Hugo Boss shares had traded as high as €120 in 2015.
