Bloomberg News

Boss Converts Preferred Shares Into Ordinary, Raises Dividend

March 13, 2012

Hugo Boss AG (BOS), the German luxury clothing maker, said it will convert its preferred shares into ordinary ones and raise its dividend by 43 percent.

Hugo Boss, controlled by buyout firm Permira Advisers, will propose the mandatory conversion of all preferred shares into ordinary ones at its shareholders meeting May 3, the Metzingen, Germany-based company said in a statement today, with holders of one preferred share receiving one ordinary share. The company also plans to convert all existing bearer shares into registered shares.

The move is aimed at increasing liquidity in the shares and raising the weight in the MDAX (MDAX) benchmark index for medium-sized companies, Boss said.

“Liquidity will increase with the conversion, which makes it easier for the majority shareholder to do a placement,” said Thomas Effler, an analyst at WestLB AG in Frankfurt.

Boss will pay holders of ordinary shares a dividend of 2.88 euros for 2011, and holders of preferred shares will receive 2.89 euros per share, meaning the company pays out 70 percent of net income attributable to shareholders.

To contact the reporters on this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.net; Julie Cruz in Frankfurt at jcruz6@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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