Sports Direct owner Frasers launches takeover bid for Hugo Boss
The offer would see Frasers pay 38 euro per share to shareholders in the fashion firm
Sports Direct owner Frasers Group has launched a takeover offer for German luxury fashion brand Hugo Boss .
Mike Ashley's retail vehicle, which currently owns around 26% of Hugo Boss , said it is offering to pay around 1.98 billion euro (£1.73 billion) for the remainder of the business to take full control.
The offer would see Frasers pay 38 euro per share to shareholders in the fashion firm.
Shares in the group were worth 36.44 euro at the close of trading on Wednesday.
It comes after speculation in recent years that Frasers could seek a takeover of the brand, having steadily built up its stake since first investing in Hugo Boss in 2020.
Frasers' chief executive Michael Murray is a member of Hugo Boss's supervisory board as a result.
Bosses at Frasers stressed that Mr Murray "did not participate in the board's discussion of, or decision to make, the offer".
The offer is now expected to go to a shareholder vote.
The UK retail giant, which has a current market value of around £3.45 billion, said it would hope to complete the deal in the second half of this year if it is approved and receives regulatory approvals.
In a statement, Frasers said: " Hugo Boss is a key brand partner for Frasers, and one of the top five brands across the Frasers Group .
"Frasers is a long-term investor in Hugo Boss and remains supportive of both Stephan Sturm , the chair of the supervisory board, and Daniel Grieder , chief executive, in pursuit of their sustainable growth strategy whilst continuing to build brand equity.
"Frasers' board of directors believes that increasing Frasers' investment in Hugo Boss will create value for Frasers' shareholders."