// Frasers Group increases investment in Hugo Boss as it looks to strengthen the group’s brand proposition
// The investment sees Frasers Group own 4.3% of Hugo Boss shares
Mike Ashley’s Frasers Group has increased its investment in Hugo Boss as it seeks “opportunities that strengthen the group’s brand proposition”.
The investment sees Frasers own 4.3% of Hugo Boss shares, while it also has a 28.5% interest via put options.
It now has a maximum exposure to the retailer of about £840 million, increasing from the £770 million exposure it reported in June.
Put options are contracts which allow the owner the right to sell the asset at a future date for a previously agreed price. Put options, unlike normal shares, do not contribute to owning a majority stake or gaining voting rights at a business.
The latest increased investment has given Frasers a 32.8% interest in Hugo Boss, up from 30.9%.
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“The strategic investments Frasers Group makes offer new opportunities for the company, whilst also helping to support the long-term future of the existing retail businesses, and the many thousands of jobs they sustain,” Frasers Group said.
“Frasers Group has extensive ambitions to grow the business inside and outside of the UK and is constantly exploring the potential for further expansion.”
The investment in Hugo Boss comes as Frasers Group becomes the fourth-biggest shareholder in Asos.
The group built a stake of more than 5% in the online retailer as it seeks to build a partnership.
