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Permira Sets Second Hugo Boss Offer

The placement would reduce the private equity fund's stake in the German firm to 56 percent.

BERLIN — Permira Holdings Limited, the majority shareholder of Hugo Boss, is placing up to 7 million ordinary shares of Hugo Boss AG in an accelerated book building process. This represents around 10 percent of total share capital.
 
Permira currently holds a 65.56 percent stake in Boss through its majority owned company, Red & Black Holding GmbH. Following the placement, the stake would decline to about 56 percent.
 
This is the second share offering since November 2011, at which time Permira placed about 4.5 million preferred shares at 68.25 euros (for a total of about 300 million euros), reducing its historical 72 percent stake in the German apparel giant to about 65 percent.

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Permira’s involvement with Boss dates back to 2007, when it acquired Valentino Fashion Group, the former parent company of Hugo Boss.
 
The placement will result in an increase in the free float of Hugo Boss AG to about 30 million shares, or around 42 percent of share capital, and according to analysts, could increase trading liquidity and weighting of the stock in the MDAX.
 
Financial sources say the indicative price range is 89.25 to 90.50 euros, a 2 to 4 percent discount to Thursday’s closing price and a 1 to 2 percent premium to Wednesday’s closing price, before Boss announced first-quarter results. This could bring Permira about 634 million euros in revenues.

 

A Permira spokesman declined to confirm the pricing range, nor comment on the book building process.