Frasers Group has made substantial progress in its investment strategies involving N Brown and Mulberry.
- An irrevocable agreement supports Falcon 24 Topco’s acquisition plans for N Brown.
- Frasers holds a significant share in N Brown, impacting the acquisition process.
- Mulberry’s board is yet to provide feedback on Frasers’ revised purchase offer.
- Challice’s major stake in Mulberry influences the ongoing negotiations.
Frasers Group, a prominent name in retail investment, has confirmed its strategic moves concerning N Brown and Mulberry. The group has announced that it signed an irrevocable undertaking to favour the recommended cash acquisition of N Brown Group by Falcon 24 Topco, controlled by Lord Joshua Alliance. This development follows Drapers’ report on the acquisition agreement valued at £191 million in a move to take the company private.
Frasers Group holds a substantial stake in N Brown, owning 94.8 million shares which account for a 20.3% ownership. Shareholders, including Frasers, will receive 40 pence per share in cash under the acquisition terms. Alternatively, eligible shareholders may opt for one unlisted ordinary share in Bidco for each N Brown share held, providing flexibility in the acquisition terms.
Meanwhile, Frasers Group has reiterated its intention to consider acquiring Mulberry, increasing its cash offer to £111 million, or 150 pence per share, up from an initial bid of £83 million. However, Challice, which possesses a 56.4% majority holding in Mulberry, has expressed concerns, indicating it as an inopportune time for such a sale and regretting the distractions caused by Frasers’ proposals.
Frasers Group acknowledges Challice’s stance and has made efforts to engage directly with the stakeholder, yet awaits a formal response from Mulberry’s board regarding its revised proposal. This move highlights the ongoing complexities in securing control over Mulberry, given Challice’s significant influence.
The standout aspect of these developments underscores Frasers Group’s active participation and influence in high-stakes acquisitions within the retail sector. These strategic decisions reflect a broader trend of consolidation and investment reshaping the landscape of retail business ownership.
Frasers Group’s recent actions demonstrate a strategic approach to expanding its influence in the retail sector through significant acquisitions.
