Frasers Group has raised its stake in Hugo Boss to 47.89 per cent after shareholders accepted €38-a-share terms for 12,157,598 shares, taking the British retailer closer to control of the German fashion group as its takeover campaign continues.

The accepted shares represent 17.62 per cent of Hugo Boss’s issued share capital and voting rights, lifting Frasers’ total holding to 33,054,959 shares. The additional acceptance period closed on 13 August, with the final position confirmed on Tuesday.

Frasers launched its voluntary public takeover offer in June, initially seeking to acquire the roughly 74 per cent of Hugo Boss it did not already own. The offer, worth about €1.98 billion, followed Frasers’ decision to cross Germany’s 30 per cent threshold, triggering a mandatory offer for the remaining shares.

Hugo Boss’s board rejected the proposal in July and urged shareholders not to accept it, describing the €38-a-share offer as inadequate. The German fashion group has maintained that its own turnaround strategy is making progress, despite weaker recent financial results.

Hugo Boss reported a 10 per cent year-on-year decline in second-quarter sales to €905 million and a 28 per cent fall in earnings before interest and tax to €59 million for the three months to 30 June. The company said it had made “tangible progress” with its turnaround strategy.

The increased stake extends Frasers’ expansion into luxury fashion, following its acquisition of department store chain Harvey Nichols for about £40 million last week. Frasers has separately built stakes in British luxury brands Burberry and Mulberry, while its retail portfolio remains anchored by Sports Direct and Flannels.

Stephan Sturm, chairman of Hugo Boss’s supervisory board, said: “We appreciate Frasers Group’s continued long-term commitment to Hugo Boss and look forward to maintaining a constructive relationship with them as our single largest shareholder.”

Daniel Grieder, chief executive of Hugo Boss, said the company welcomed “Frasers Group’s support for our long-term strategic direction”. Frasers chief executive Michael Murray, who is Mike Ashley’s son-in-law, was nominated to Hugo Boss’s supervisory board in 2024.

Frasers first acquired a stake in Hugo Boss in 2020 and has continued increasing its holding during the takeover process. The latest acceptance leaves it just short of a majority stake, although it remains the German company’s largest shareholder.

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