Frasers Group, led by Mike Ashley, has increased its stake in German fashion company Hugo Boss, following a takeover bid announced last month. The retail group, which owns Sports Direct and Flannels, acquired an additional 3.7 percent of Hugo Boss’s shares, raising its total holding to more than 30 percent.

Frasers Group previously submitted a £1.7 billion offer for Hugo Boss, valuing the company at €38 per share. Despite this, the Hugo Boss board has recommended that shareholders reject the bid. The board cited concerns over the offer’s value and strategic direction, urging investors to consider the company’s long-term prospects independently.

Under German takeover regulations, a shareholder is required to make a mandatory bid for all remaining shares if their stake surpasses the 30 percent threshold. However, Frasers Group’s initial offer was structured as a voluntary takeover bid for 100 percent of shares, which allows the company to increase its stake beyond 30 percent without triggering an automatic new offer requirement.

The move to increase its shareholding is seen as a strategic step by Frasers Group to strengthen its position and potentially influence future negotiations or board decisions at Hugo Boss. The outcome of the takeover effort remains uncertain as shareholders weigh the offer amidst differing views on the company’s valuation and future direction.