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Fraser Group Increases Hugo Boss Stake

Sam Boughedda trader
Updated 24 Oct 2022

Buy Frasers Group Shares Your Capital Is At Risk

Key points:

  • Frasers Group said it has increased its investment in Hugo Boss
  • It now holds over 3m shares of Hugo Boss common stock
  • Frasers Group Shares are up 0.72%

Frasers Group (LON: FRAS), which holds brands such as Sports Direct, House of Fraser and Evans Cycles, announced Monday morning that it has increased its investment in Hugo Boss.

The British retail group, which predominantly traded under the Sports Direct brand, told investors in a press release that it now holds 3.025 million shares of Hugo Boss common stock, representing 4.3% of its total share capital. In addition, it has approximately 20.09 million shares via the sale of put options, representing around 28.5% of Hugo Boss's total share capital.

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Frasers Group shares are down more than 20% in 2022. Its shares opened Monday's session higher at 638p but have since retraced to 625.5p, up 0.72% at the time of writing.

Frasers Group explained that after calculating the premium it will receive under the put options, its maximum aggregate exposure in Hugo Boss is valued at approximately €960m (around £840m), based on the closing share price on October 21, 2022.

The company made clear that the investment in Hugo Boss is part of its strategy and the “acquisition of direct and/or indirect strategic stakes within Hugo Boss, are in the ordinary course of business of the company.”

“Frasers Group continues to see opportunities that strengthen Frasers Group's brand proposition and the recent acquisitions of Studio Retail Limited (with its significant knowledge and experience in consumer credit) and Missguided (with its focus on Womenswear and its digital platforms) are examples of its drive to expand and acquire businesses and brands that can strengthen Frasers Group, and the connection to our consumers,” the company stated.

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.