Hugo Boss Urges Shareholders to Reject Frasers Group's £1.7 Billion Takeover Bid
The German fashion house deemed the offer inadequate and cited concerns over its long-term value.
Hugo Boss has advised its investors to refuse a takeover offer from Frasers Group, calling the £1.7 billion bid "inadequate."
Frasers Group, owned by Mike Ashley, had proposed the offer last month for the 74 percent of Hugo Boss it does not already control. The bid valued the German fashion company at approximately £2.3 billion. Frasers Group stated that a successful takeover would "facilitate further investment."
However, Hugo Boss's management has unanimously recommended that shareholders reject the offer. The company concluded that the deal would be financially insufficient, failing to reflect the company's intrinsic value and future potential. Hugo Boss chief executive Daniel Grieder emphasized the company's focus on strengthening its brands, improving profitability, and accelerating cash generation.
Frasers Group, which has been building its stake in Hugo Boss since 2020 and currently holds around 26 percent, has been expanding its retail empire through various acquisitions. Michael Murray, Frasers' chief executive and son-in-law of Mike Ashley, has served on Hugo Boss's supervisory board since 2024.