Frasers Group PLC (LSE:FRAS), the sportswear retailer controlled by Mike Ashley, said its maximum potential financial exposure to Hugo Boss, a German fashion company, has fallen to £580mln.
The Sports Direct owner holds 3.9% of the fashion house’s stock and has an additional 25% through the sale of financial instruments called put options.
In November, the group said it had a 4.3% direct stake and 30.3% via put options. It first took a 5% holding in the German group in 2020.
A hint as to why Frasers built the interest came last June when it said: “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 in the interests of both Frasers Group’s and Hugo Boss’ shareholders.”
As well the company’s ownership of the Sports Direct retail chain, it also runs the House of Fraser department store chain, Flannels, Game, Jack Wills, Evans Cycles and Sofa.com.