Frasers chief executive Michael Murray was unable to be involved in the board’s discussion or decision to make the offer, as he is a member of the supervisory board at Hugo Boss.
Frasers Group has issued a statement saying its £1.7bn offer for premium German fashion brand Hugo Boss will not be increased.
Frasers announced a bid for Hugo Boss earlier in June at €38 (£32.74) per share, aiming to take over the 73.42% of the company that it does not own.
The British group first bought a 5.1% stake in the German firm in 2020 and has been building its holding since then. Hugo Boss shares are trading at €37.51 at the time of writing, meaning Frasers’ offer holds little to no premium on the current price.
In a statement yesterday, Frasers said: “The offer price is final and Frasers bindingly and irrevocably declares that it will not increase the offer price during the acceptance period and the additional acceptance period.”
Shareholders have a month to decide whether to accept Frasers’ offer for the shares.
When announcing the bid, Frasers said: “Frasers has a strong track record in making strategic investments in the ordinary course of its business to develop relationships and partnerships. 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 officer, in pursuit of their sustainable growth strategy whilst continuing to build brand equity.”
In addition to the Hugo Boss offer, Frasers also recently announced a £166m bid for the remaining available shares of Australian retail firm Accent Group, the company it has been partnering with to expand the Sports Direct brand across Australia and New Zealand.
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