FRANKFURT/STUTTGART, Sept 3 European private equity firm Permira plans further sales of shares in German fashion retailer Hugo Boss after it sold an 11 percent stake on Wednesday, a source familiar with the matter said.
Shares in Hugo Boss were down 5.6 percent at 101.20 euros at 1257 GMT after Permira placed 7.9 million shares at 101.50 euros each in a deal run by Citigroup and BoA Merrill Lynch , according to two people familiar with the deal.
Depending on demand and the share price development, the remainder of Permira's shares - representing a 39.6 percent stake - will be placed in packets of around 10 percent, one of the sources said. The exact volume to be sold will depend on market conditions, the source added.
Permira declined to comment.
As part of the deal to sell the 11 percent stake on Wednesday, Permira agreed to a 90-day lockup period for its remaining shares, but this could be lifted if agreed with the banks.
Permira spent 5.3 billion euros ($7 billion) on a controlling stake in Hugo Boss in 2007, installing Claus-Dietrich Lahrs as chief executive and helping the Hugo Boss share price to quadruple since then.
The private equity firm's gradual disposal of Hugo Boss has weighed on the share price, although the stock quickly recovered after the firm cut its stake to slightly above 50 percent from 56 percent in May, to touch an all-time high of 115 euros.
Analysts do not expect Permira's sales to change the Hugo Boss strategy to expand its womenswear collection under New York designer Jason Wu, and open more of its own stores.
"We see the company as structurally well positioned given its apparel exposure combined with the continued benefits of the shift to retail," Barclays analysts wrote in a note as they upgraded the stock to "equal weight".
(1 US dollar = 0.7611 euro)
(Reporting by Arno Schuetze and Ilona Wissenbach; Writing by Emma Thomasson; Editing by Georgina Prodhan and Pravin Char)