Hugo Boss is urging its shareholders to reject a $2.2 billion takeover offer from Frasers Group (FRAS), stating the proposal significantly undervalues the company and that its own independent growth strategy holds greater potential.

Frasers Group, controlled by Mike Ashley, announced its intention last month to acquire the approximately 73.42% of Hugo Boss it does not already own for about €1.93 billion ($2.2 billion), offering €38 per share.

The German luxury fashion house stated on Thursday that the offer price fails to reflect the inherent value of Hugo Boss as a standalone company and its medium to long-term growth prospects. The company cited independent valuation opinions from Bank of America and Goldman Sachs in formally recommending shareholders reject the proposal.

Hugo Boss emphasized that it will continue to focus on executing its own growth roadmap, asserting it is fully capable of independently implementing its strategy and delivering sustainable long-term value for shareholders.

Last year, Hugo Boss announced a new set of operational targets through 2028. This enhanced plan, building upon its existing strategy, is designed to boost the group's performance in a market where many luxury brands are currently facing pressure.

"The independent execution of our strategy will create significantly more value for all our shareholders," said Stefan Sturm, Chairman of the Supervisory Board of Hugo Boss. "At the same time, Frasers Group is our largest shareholder, and we continue to look forward to constructive discussions with them."

Frasers Group has not yet responded to requests for comment from the media.