Permira places up to 7.9 million Hugo Boss shares

Amy King
03 September 2014

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Red & Black, an investment company controlled by Permira, is understood to have placed up to 7.9 million Hugo Boss shares, equal to around 11.2% of the company's share capital.

The accelerated bookbuilding sale could raise up to €845m for the investor. The sale is being managed by Bank of America Merrill Lynch and Citigroup.

Shares have fallen as low as €100.90 per share today – a significant decrease from yesterday's high point of €107.45 per share.

Permira was reported to have placed a 5.6% stake in the company in May this year, reaping more than €400m in the process.

In May 2013, the buyout house sold 7 million shares – or a 10% stake – in Hugo Boss, at a price ranging between €89.25-90.50 and generating around €612m in proceeds.

At the time, Permira stated it would be holding onto the firm, which it originally bought for €5.34bn in 2007, for at least another six months.

Prior to this, Permira sold 4.5 million shares through an accelerated book building in November 2011. After the transaction, Permira held a 66% stake and 89% of the voting rights in Hugo Boss.

Permira recapitalised Red & Black, the holding company for Hugo Boss, in October last year. The transaction saw SVG Capital, Permira's main investor, realising £110.9m, while holding onto a stake in the German fashion brand worth £308.6m.