Hugo Boss AG (BOS) fell as much as 5.6 percent in Frankfurt trading after majority shareholder Permira Advisers said it’s selling part of its stake.
The buyout firm, which has controlled the German luxury clothier since 2007, said today it will sell 4.5 million shares, or about 6.4 percent of the share capital, to institutional shareholders by way of an accelerated book building. The sale by Permira’s Red & Black Lux SARL unit will reduce its holding to 66 percent. It will still own 89 percent of the voting rights.
Preferred stock of Metzingen, Germany-based Hugo Boss was down 5.3 percent at 68.72 euros as of 9:45 a.m. Citigroup Inc. is selling Permira’s shares at a price of 67.75 euros to 68.50 euros, according to a term sheet obtained by Bloomberg News.
Hugo Boss raised its forecast for 2015 sales and earnings last week, saying growth in Asia and e-commerce will boost results. The company expects sales of 3 billion euros ($4.12 billion), compared with a previous forecast of 2.5 billion euros. Earnings before interest, tax, depreciation and amortization excluding special items may reach 750 million euros, compared with an earlier target of 500 million euros.
“One should not forget about the positives,” Herbert Sturm, a Frankfurt-based analyst at DZ Bank AG, wrote in a report to investors today. “The free float of the preferred shares is rising significantly. Mid- and long-term earnings outlook is very promising. Any weakness of the share in the short term, we would use to build up new positions.”
Citigroup is sole bookrunner of the sale, terms show.
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