Frasers raises Hugo Boss stake past 30%, triggering mandatory bid

Frasers Group said on Tuesday it has increased its stake in Hugo Boss to approximately 30.28%, crossing a key regulatory threshold that triggers a mandatory takeover bid under German law as it presses ahead with its contested acquisition of the German fashion house.investing+1

Crossing the Threshold

The British retail conglomerate, controlled by billionaire Mike Ashley, acquired an additional 2,549,900 Hugo Boss shares — representing roughly 3.69% of the company's share capital and voting rights — following the exercise of put options by counterparties on July 17, 2026. Frasers now holds a total of 20,897,361 shares in the Metzingen-based luxury brand.fashionunited

Under Germany's Takeover Code, any shareholder crossing 30% of voting rights is required to launch a mandatory offer for the remaining shares. Frasers had already initiated a voluntary public cash takeover offer on June 10 at €38 per share, valuing the deal at roughly €2 billion. The company confirmed on June 25 that its offer price was final and would not be raised.reuters+4

Hugo Boss Board Pushes Back

Hugo Boss's management and supervisory boards have recommended shareholders reject the offer, calling it "financially inadequate" and arguing it reflects only the statutory minimum price under German takeover rules. The company said the bid fails to account for Hugo Boss's long-term value and the potential of its ongoing turnaround strategy under CEO Daniel Grieder.tradingview+1

External advisers Bank of America and Goldman Sachs The Goldman Sachs Group, Inc. ↘ 1.17% supported the board's conclusion that the offer does not properly value the company. Supervisory board chairman Stephan Sturm said he believes the current restructuring program could deliver better returns for shareholders than accepting the bid.tradingview

What Comes Next

The initial acceptance period for Frasers' offer is set to close on July 27, 2026, at midnight Central European Summer Time. Frasers said Tuesday that its offer remains open for shareholders wishing to tender their shares. The company expects the transaction, if successful, to complete in the second half of 2026, subject to regulatory clearances.finance.yahoo+3