Sports Direct owner Mike Ashley tightens hold on Hugo Boss
Frasers Group increases stake in German fashion house to 48%, after buying Harvey Nichols chain last week
The retail billionaire Mike Ashley has given the latest indication that his summer shopping spree may be far from over, after he increased his stake in the luxury giant Hugo Boss to nearly half.
Ashley's Frasers Group, which last week bought Harvey Nichols department stores for a reported 40m, increased its shareholding in the German fashion house to 48%, falling short of taking full control.
In June, the British billionaire made a nearly 2bn (1.73bn) takeover offer for the luxury group, but its board rejected Frasers' bid as inadequate" and urged shareholders not to accept Ashley's offer.
The new, higher stake is a result of 17.6% of shareholders accepting Ashley's offer, which amounted to 38 a share. That bid reflected only a 4% premium to Hugo Boss's shares when it was tabled.
Axel Rudolph, an analyst at the investing platform IG, said it was another major step towards gaining control" of Hugo Boss. Ashley's new shareholding puts Frasers firmly in the driving seat as it looks to increase its influence", he added.