© Reuters. FILE PHOTO: The Hugo Boss logo is seen in Metzingen, Germany, June 16, 2017. REUTERS/Michaela Rehle
LONDON (Reuters) – Mike Ashley’s Frasers Group said on Wednesday it had raised its maximum exposure to Hugo Boss to $937 million and reiterated its support for the German fashion brand’s strategy and management team.
Fraser, formerly known as live sports (LON: ) and is making a push towards the upper end of the market, the company said it now holds 4.9% of Hugo Boss shares directly and another 26% indirectly by selling derivatives called put options. stock.
The British sportswear retailer said the largest total exposure related to its interests was around 900 million euros or 770 million pounds ($937 million).
Frasers took its first stake in Hugo Boss in 2020 and has been expressing support for its management.
“This investment reflects Frasers Group’s belief in the Hugo Boss brand, strategy and management team. Frasers Group continues to intend to be a supportive stakeholder and create value for the benefit of Frasers Group and Hugo Boss shareholders,” Frasers said on Wednesday .
Hugo Boss is a supplier to the Group’s House of Fraser and Flannels chains.
Shares in Frasers were flat at 0757 GMT, while shares in Hugo Boss were down 0.5%.
Ashley stepped down as Fraser’s chief executive last month. He remains the executive director with a 69% stake.
His son-in-law Michael Murray succeeds him as CEO.
(£1 = €1.1653)
($1 = £0.8216)