Frasers Group, the parent company of British retailer Sports Direct, reported its current investment in Hugo Boss now comprises 2,714,300 shares of common stock, representing 3.9 percent of Hugo Boss’s total share capital.
The position is covered from the sale of 2,714,300 call options and 17,574,000 shares of common stock via the sale of put options, representing 25.0 percent of Hugo Boss’s total share capital. Of this, 1,760,000 of common stock, representing 2.5 percent of Hugo Boss’s total share capital is matched from the purchase of put options.
After taking into account the premium it would receive under the put and call options, Frasers Group’s maximum aggregate exposure, in connection with its net acquired interests in Hugo Boss, with the common stock holding value at the closing share price on January 5 2023, is approximately €660 million (c. £580m).
The above represents the resulting position after the most recent transaction, the on-market sale of call options on January 5, 2023. If the sold call options are exercised at maturity, the consideration will be retained by the Group.