METZINGEN, Germany — Permira Holdings Ltd. is cutting its stake in Hugo Boss AG below 14 percent, boosting the clothier's free float in a move that may make it more attractive to institutional investors.

Permira is selling a 10.4 percent stake to the market, and a further 500 million euros to Italy’s Marzotto family, Hugo Boss said in a statement. The combined value of those divestments is about 1.3 billion euros ($1.5 billion), based on today’s closing price of 109.60 euros per share.

Permira has over the last two years been cutting its holding in the fashion house, in which it acquired a majority stake in 2007. When the free float rose to 66 percent after a stake sale Dec. 12, Metzingen, Germany-based Hugo Boss said it would make the stock more attractive to institutional investors.

Gaetano Marzotto already sits on Hugo Boss's supervisory board. Permira acquired control of Valentino Fashion Group SpA from the Marzottos in 2007.

Hugo Boss shares have gained 7.8 percent this year, valuing it at 7.7 billion euros. That’s even after reporting fourth- quarter sales and profit that missed estimates, as it contended with sluggish demand for high-priced fashion in economically stagnant Europe.

By Alex Webb. Editors: Simon Thiel, James Kraus, Jim Silver.