BERLIN — Permira, the largest shareholder of Hugo Boss, has once again reduced its stake in the German fashion group, cutting its holding to about 14 percent from 32 percent.
Late Monday night, Boss said Permira had started placing at least 7.35 million shares in an accelerated bookbuilding process through its majority owned company Red & Black S.A. This represents about 10.4 percent of share capital and industry sources estimate the move will net Red & Black around 800 million euros, or $906 million at current exchange.
At the same time, Boss said it was informed that Red & Black also intended to sell about 500 million euros, or $566.2 million, worth of Hugo Boss shares to two enterprises of the Marzotto family.
Boss said Permira has committed itself to a 90-day lock-up period for its remaining stake.
Permira’s involvement with Boss goes back to 2007, when it took over a controlling stake in the German group via its acquisition of Valentino, the former parent company of Hugo Boss. Under Boss chief executive officer Claus-Dietrich Lahrs, the company’s share price has quadrupled since then.
Permira made its first share offering in 2011, then shaved its stake twice in 2013, and in 2014, made three separate placements which brought its interest down from 56 percent to 32 percent. This latest reduction means Permira no longer has a blocking minority in Hugo Boss.
Insider reports say Red & Black offered the shares at 102 euros to market price, which following the news on Tuesday morning, was down 5 percent at 104.10 euros.