Hugo Boss shares soar following a £2bn takeover bid from UK-based Frasers

(Il Sole 24 Ore Radiocor) - Hugo Boss is soaring on the Frankfurt Stock Exchange, buoyed by the takeover bid worth nearly €2 billion launched by the British group Frasers and is trading above the bid price. Frasers, which is already the largest shareholder in Hugo Boss with a stake of around 26%, announced on Wednesday after the close of trading its decision to launch a takeover bid at €38 per share in cash for the 74% of shares it does not control, representing a 4.3% premium over the closing price, for a total amount of €1.978 billion.

Frasers emphasises that Hugo Boss is a key partner and one of its five core brands, and states that it is a long-term investor in the German group and continues to support its growth strategy. With this in mind, the British company states that it expects to complete the acquisition in the second half of 2026.

Hugo Boss’s reaction was decidedly more cautious; in a statement, the company indicated that it had “taken note of the intention to launch” the takeover bid, which is “unsolicited” and “not coordinated with the company”. The German company also noted that the offer price represents a 4% premium not only over the closing price on 10 June but also over the volume-weighted average price of the last three months, thus suggesting that the premium is limited. “Following the publication of the offer document by Frasers Group plc, the board of directors and the supervisory board will carefully examine the offer and issue a reasoned statement, acting in the best interests of the company, its shareholders, employees and customers,” concludes the Hugo Boss statement.

The acquisition would integrate the German brand into the retail empire controlled by Mike Ashley, given that the Frasers Group owns Sports Direct and House of Frasers and holds stakes in Asos, Debenhams and Currys. According to analysts at J.P. Morgan, the offer may represent a short-term floor for the share price, but with limited upside potential, as no counter-offer from a competitor is expected. For Citi experts, investors may be waiting for an improved offer for Hugo Boss. The 4% premium could ‘fuel speculation that a higher offer may eventually materialise’. Hugo Boss, whose share price has halved compared to three years ago, is facing a slowdown in sales and is pursuing a turnaround strategy focused on shop refurbishment, streamlining its product range and developing its women’s ready-to-wear line