Newcastle United owner Mike Ashley’s Frasers Group has doubled its stake in upmarket fashion chain Hugo Boss.
The group had previously bought around 3.5m shares in the firm at a cost of around £97m in the middle of June. Now its stake has been increased to just over 7m shares, which are valued at £186m, giving Frasers a 10% stake in the German chain.
Frasers Group has described the purchase, which involves a number of financial instruments, as a “strategic investment”.
The company said: “After taking into account the premium it will receive under the put options, Frasers Group’s maximum aggregate exposure in connection with its acquired interests in Hugo Boss is approximately €204m (c.GBP £186m)
“This investment reflects Frasers Group’s growing relationship with Hugo Boss and belief in Hugo Boss’ long-term future. Frasers Group intends to be a supportive stakeholder and create value in the interests of both Frasers Group’s and Hugo Boss’ shareholders."
Hugo Boss was founded in Germany in 1923 and has more than 1,000 stores worldwide, including a number of concessions in House of Fraser stores.
The acquisiton by Frasers Group adds to the firms it has a stake in, which also include French Connection, Jack Wills, Game Digital, Agent Provocatuer and Sofa.com.
But the company’s stake in Debenhams was wiped out last year when the department store chain went into administration.
