![\"Hugo](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2020\/06\/Hugo-Boss.png\")
Frasers Group has lodged a \u00a31.7 billion (\u20ac1.98bn) bid for the 74% share of Hugo Boss it does not own, valuing the high-end fashion chain at \u20ac2.7bn.<\/p>\n
As a long-term investor in the German company, Frasers\u2019 chief executive, Michael Murray, was elected to its supervisory board in May last year.<\/p>\n
The UK retailer said it is supportive of both Stephan Sturm, the chair of the supervisory board, and Daniel Grieder, chief executive, but believes that increasing its investment it will create value for Frasers\u2019 shareholders.<\/p>\n
Hugo Boss, which is traded on the regulated market of the Frankfurt Stock Exchange, has seen its shares fall as profits and sales have declined.<\/p>\n
The \u20ac38 euro per share move, announced to the London Stock Exchange last night, is the latest attempt by Frasers to build a retail empire across the fashion sector.<\/p>\n
Majority-owned by Mike Ashley and formerly known as Sports Direct, Frasers has taken significant stakes in Asos, Boohoo, Mulberry and AO, using its holdings to influence strategy and governance.\u00a0<\/p>\n
Frasers, which has its roots in Glasgow, said the transaction is subject to merger control clearances and is anticipated to complete in the second half of 2026.<\/p>\n
It has agreed to enter into an acquisition facility agreement with, among others, BNP Paribas, Deutsche Bank Luxembourg S.A., NatWest Bank and Standard Chartered Bank as lenders.<\/p>\n
Shares in Frasers\u00a0closed up 30p, or 4%, at 771p.<\/p>\n
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