Shareholders in German fashion house Hugo Boss have reportedly largely rejected a £1.7 billion takeover bid from Mike Ashley’s Frasers Group, dealing a blow to the British retail empire’s ambitious overseas expansion plans.
Despite the cold shoulder from investors, Frasers has managed to tighten its overall grip on the luxury label, bringing its total holding and voting rights to 37.58 per cent.
Just 7.3 per cent of Hugo Boss shares were tendered during the initial acceptance window ending 27 July. Frasers secured acceptances for 5.04 million shares, lifting its total holding from 30.28 to 37.58 per cent.
Frasers’ €38 per share cash offer values the entire fashion brand at approximately €2.7bn (£2.3bn). The company confirmed this price is final. Investors have now been given a second chance to sell under the same terms during an additional acceptance period running until 13 August.
The sharp rejection comes after the management and supervisory boards of Hugo Boss unanimously urged shareholders to turn down the approach, dismissing the proposal as “financially inadequate.” Leadership argued that the offer fails to capture the brand’s standalone valuation or its medium-to-long-term growth trajectory.
Despite investor pushback, Frasers cleared a major hurdle earlier in the week when the European Commission granted unconditional merger clearance, fulfilling the final regulatory requirement needed to complete a potential deal.
Frasers Chief Executive Michael Murray, Mike Ashley’s son-in-law, currently holds a seat on the Hugo Boss supervisory board, though he was recused from board evaluations regarding the bid due to a conflict of interest. Industry reports indicate that should Frasers eventually secure full control, the group is considering installing Mr Murray as Chief Executive of Hugo Boss.
This latest takeover effort represents the largest acquisition attempt in Frasers’ history and highlights its drive to move upmarket into the international premium fashion arena. The company has steadily amassed strategic stakes in high-profile brands, including: Puma, Burberry, Mulberry, and Asos.
