UK retailer Frasers Group has signalled plans to raise its German fashion house Hugo Boss stake to more than 50% of share capital and voting rights.
The retailer disclosed the intention in a filing to the London Stock Exchange, offering no detail on the method or timing of any further purchases.
Following the close of the acceptance period for its voluntary public takeover offer, Frasers' direct shareholding stands at 33.05 million shares, equivalent to 47.89% of Hugo Boss's share capital and voting rights.
This is up from the 26.06% stake the retailer held when the bid was first launched in June.
The company said there was no certainty as to whether, when, or at what price it might make further acquisitions, nor whether the 50% threshold would eventually be crossed.
Frasers also noted it could continue trading other financial instruments linked to Hugo Boss shares such as options and derivatives, and stated it would comply with all applicable regulatory requirements, including those relating to disclosure of voting rights, in connection with any additional investment.
In a separate development, Frasers said it is reviewing its support for Stephan Sturm's position as chairman of Hugo Boss's supervisory board, considering recent market speculation.
In the event that backing is withdrawn, the retailer indicated it would publish a formal statement of intent, as required under the German Securities Trading Act.
Frasers' original offer, valued at €2.67bn ($3.09bn) (€38 a share) in cash, was launched in June and applied to all Hugo Boss shares not already under its ownership—covering 73.94% of share capital and 73.42% of voting rights, excluding treasury shares.
Hugo Boss's board dismissed the bid as inadequate in July and advised shareholders against accepting it.
Later that month, Frasers confirmed the offer had become unconditional after clearing merger control review by the European Commission.
The development is consistent with Frasers' broader investment activity across the sector.
In March, it built a 5.8% stake in Puma, largely using derivatives, and had accumulated a position equal to 4.15% of voting rights in Burberry Group in July.
The group already holds the position of second-largest shareholder in Mulberry Group.
