Frasers extends Hugo Boss takeover offer after limited shareholder support

British retail giant Frasers Group has extended the acceptance period for its 2.3 billion pound takeover offer for Hugo Boss after securing backing from just 7.3 percent of independent shareholders by the initial deadline.

The retailer's 38 euro-per-share cash offer, which values the stake Frasers does not already hold in the business at 1.7 billion pounds, was rejected last month by Hugo Boss' board, which described the bid as "inadequate" and said it undervalued the business. Following additional share purchases, Frasers increased its holding above 30 percent, triggering a mandatory takeover offer under German takeover rules.

According to a filing with the London Stock Exchange, support for the offer now totals 37.6 percent of Hugo Boss's share capital. The additional acceptance period opened on July 31 and will run until August 13. The bid, which recently received EU competition clearance, has no minimum acceptance threshold. Frasers has said the offer is final and will not be increased.

Frasers has been a shareholder in Hugo Boss since 2020 and has said it supports the German fashion group's existing management and strategy. The move marks the latest acquisition attempt by Mike Ashley's retail group, which has expanded its fashion portfolio in recent years through acquisitions including House of Fraser, Jack Wills and Missguided, while also building stakes in luxury brands such as Burberry.