Hugo Boss set to become Frasers subsidiary as stake crosses 50% (updated)

Frasers

Today 18:58

Adds comment by Hugo Boss, details throughout
Frasers buys 198,666 Hugo Boss shares for about €7.6 million
Frasers' holding rises to 50.08%
Hugo Boss earnings, assets, liabilities to be consolidated into Frasers
Oct 23 (Reuters) - Fashion group Hugo Boss BOSSn.DE will become a subsidiary of Mike Ashley-controlled Frasers FRAS.L after the British retailer on Friday raised its stake in the German company to more than 50%.
Frasers, which made a failed €2 billion takeover bid for the German fashion house in June, said it had bought a further 198,666 Hugo Boss shares for about €7.6 million ($8.51 million), taking its total stake to about 34.5 million shares, or 50.08%.
Hugo Boss' earnings, assets and liabilities are expected to be consolidated into Frasers' accounts as the stake passed 50%, the British firm said.
A Hugo Boss spokesperson said the company had taken note of Frasers' latest stake increase, but said that crossing the 50% threshold would not have any major implications.
     Frasers, which has been pushing in to the premium and luxury space and ramping up its pursuit of the underperforming German designer known for its boxy men's suits, said crossing the 50% stake threshold was in the best interests of its investors.
     Since Hugo Boss rejected a €38-per-share cash offer as "financially inadequate," the company's chairman has stepped down and Frasers CEO Michael Murray has become the chairman of its supervisory board while the British company has steadily raised its stake.
The stake purchase was funded from existing cash resources, Frasers said.
     Frasers shares closed 0.3% higher on Friday, while Hugo Boss ended 0.8% lower.
     
($1 = 0.8935 euro)

(Reporting by Sri Hari N S and Shashwat Awasthi in Bengaluru, Additional reporting by Bageshri Banerjee in Bengaluru; Editing by Tasim Zahid and Matthew Lewis)
((SriHari.NS@thomsonreuters.com;))