Hugo Boss shares jump as it says it will ‘thoroughly examine’ Frasers offer
Summary
Hugo Boss shares rose nearly 7% after the company said it will carefully review a nearly €2 billion takeover offer from Frasers Group, owned by Mike Ashley. Frasers already owns about 26% of Hugo Boss and is offering €38 per share in cash to take full control of the German fashion brand.Key Facts
- Frasers Group, led by Mike Ashley, proposed to buy all Hugo Boss shares for about €1.98 billion.
- The offer price is €38 per share, which is 4.3% higher than the previous closing price.
- Hugo Boss shares increased from €39 to €38.84 after the news, while Frasers shares fell 2.5%.
- Hugo Boss generated €4.3 billion in sales last year and is Germany’s biggest luxury fashion group.
- The Hugo Boss board said the offer was not coordinated with the company and will be thoroughly examined.
- Frasers owns other retail brands like Sports Direct, House of Fraser, Flannels, and Gieves & Hawkes.
- Hugo Boss has been working on a turnaround plan, updating stores and products, focusing more on womenswear.
- JP Morgan Chase said the bid sets a near-term price floor for Hugo Boss shares but sees little chance of a competing offer.
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