Frasers has increased its stake in Hugo Boss to 30.28%, exceeding the mandatory bid threshold under the German Takeover Code as its £1.7bn takeover offer for the luxury fashion group continues.

The UK retailer acquired an additional 2.55 million Hugo Boss shares following the exercise of put options, taking its holding to 20.9 million shares, or 30.28% of the company's share capital and voting rights, excluding shares already tendered into the offer.

Crossing the 30% threshold formally establishes control under German takeover rules, although Frasers had already launched its voluntary offer in June to satisfy the mandatory bid requirements. The offer remains open until 27 July.

Frasers said it was "pleased to confirm that it has exceeded the mandatory bid threshold of 30% as provided for in the German Takeover Code", adding that its €38 per share offer "remains open for shareholders to accept".

Earlier this month, Hugo Boss urged shareholders to reject the bid, arguing the offer "does not adequately reflect" the company's standalone prospects or future value creation potential. The German fashion group said it continued to see "substantial value creation potential" through the execution of its Claim 5 Touchdown strategy.

The level of shareholder acceptances after the offer closes at the end of the month is now expected to determine whether Frasers can significantly strengthen its control of Hugo Boss beyond its existing stake.

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