Frasers Group (FRAS.L) shares rose on Tuesday morning after it disclosed it now owns a nearly 48% stake in German fashion group Hugo Boss (BOSS.F), following the expiry of the extended acceptance period for its takeover offer on Aug. 13.
The British sports and luxury retailer received valid acceptances for 12,157,598 Hugo Boss shares, reflecting a 17.62% stake. Including the shares it already owned, Frasers now holds 33,054,959 shares, equivalent to a 47.89% stake.
Shares in Frasers were up 2% in London, while Hugo Boss shares were marginally higher in Frankfurt during early trading.
In June, Frasers launched a 1.98 billion-euro takeover offer for Hugo Boss, seeking to acquire the 73.94% stake it did not already own at 38 euros per share.
“Hugo Boss is a key brand partner for Frasers, and one of the top five brands across the Frasers group,” Frasers said when it launched the offer. The company added that it is a long-term investor and “remains supportive” of both Stephan Sturm, the chair of the supervisory board, and Daniel Grieder, chief executive officer.
Hugo Boss management, however, urged shareholders on July 9 to reject the offer, saying it “does not adequately reflect Hugo Boss’ standalone prospects and future value creation potential.”
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