© Reuters. FILE PHOTO: Hugo Boss logo seen in Metzingen, Germany, June 16, 2017. REUTERS / Michaela Rehle
LONDON (Reuters) – Mike Ashley’s Frasers Group said Wednesday that it has increased its maximum exposure to Hugo Boss to $ 937 million and reaffirmed its support for the strategy and management team of the German fashion brand.
Frasers, who used to be called Sports Direct (LON 🙂 and seeks to move to a higher market, said it now holds 4.9% of Hugo Boss shares directly and another 26% of shares indirectly through the sale of derivatives known as put options.
The British sportswear and clothing retailer said its maximum total exposure to its interests was around 900 million euros or 770 million pounds (937 million dollars).
Frasers first took a stake in Hugo Boss in 2020 and has consistently expressed support for its management.
“This investment reflects the Frasers Group’s belief in the Hugo Boss brand, strategy and management team. The Frasers Group continues to be a supportive stakeholder and create value in the interests of both Frasers Group and Hugo Boss shareholders,” Frasers said. on Wednesday.
Hugo Boss is the supplier of the House of Fraser and Flannels chains of the group.
Shares of Frasers remained unchanged at 07:57 GMT, while shares of Hugo Boss fell 0.5%.
Ashley stepped down as CEO of Frasers last month. He remains CEO and owns 69% of the capital.
He was succeeded as CEO by Michael Murray, his son-in-law.
(1 British pound = 1.1653 euros)
(1 $ = 0.8216 pounds)