Frasers has increased its stake in Hugo Boss from 5.1% to 10.1%

Frasers has increased its stake in Hugo Boss from 5.1% to 10.1%

Frasers Group, formerly known as Sports Direct International, has almost doubled its stake in German luxury fashion brand Hugo Boss.

The Mike Ashley-owned company now holds 552,500 shares of common stock, representing 0.8% of Hugo Boss's total share capital.

The purchase also comprises 2,249,601 shares of common stock via contracts for difference, and 4,260,000 shares of common stock via the sale of put options.

After taking into account the premium it will receive under the put options, Frasers Group says its maximum aggregate exposure in connection with its acquired interests in Hugo Boss is about EUR204m (US$228.7m).

"This investment reflects Frasers Group's growing relationship with Hugo Boss and belief in Hugo Boss' long-term future," the company said in a filing. "Frasers Group intends to be a supportive stakeholder and create value in the interests of both Frasers Group's and Hugo Boss' shareholders."

The move increases Frasers' stake in the German luxury fashion brand to 10.1% from the initial 5.1% it bought two weeks ago.