Hugo Boss share values dropped to its lowest in eight months in trading in Frankfurt, Germany after its majority ownership, Permira Advisers LLP said it is planning to sell off a stake in the German luxury brand clothier.
Share prices fell by as much as 6.1% to Eur87.12, the sharpest intraday decline since Sept 11, 2012. The decline tempered the overall stock gain this year to 9.5%, pegging the value of the brand based out of Metzingen in the Eur6.15 billion or US$8.06 billion range.
Permira is seeking to sell 7 million shares in Hugo Boss or about 10% of outstanding shares of stock through an accelerated bookbuilding. The London based firm confirmed the move through a statement. The stock price offered is priced between Eur87.50 and Eur88.50, which is lower than an earlier price of Eur89.25 and Eur90.50 per share. These figures were obtained by Bloomberg News through a company offer sheet.
Permira obtained the shareholdings when it purchased a stake in Valentino Fashion Group SpA back in 2007. Valentino was the parent company of Hugo Boss and the shareholdings in Valentino, except Hugo Boss were then sold to a consortium of Qatari investors last July 2012.
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