Mulberry has rejected an increased takeover offer from Frasers.
- The revised £111 million bid by the Sports Direct owner was deemed untenable.
- Majority stakeholder Challice remains uninterested in selling its stake.
- Mulberry aims to focus on enhancing its business performance.
- Frasers, holding a significant stake, must decide on a firm offer by October 28.
The Somerset-based luxury brand, Mulberry, has turned down an enhanced bid of £111 million from Frasers, marking it as the second such proposal to be declined. The increasing tension between Mulberry’s key shareholders, particularly between the company’s board and its largest stakeholder, Challice, remains evident. Mulberry, having evaluated the offer in conjunction with its advisors, determined that the proposal was unsustainable.
Challice, the predominant stakeholder with a 56.4% holding, represented by Singaporean entrepreneur Christina Ong and her husband Ong Beng Seng, asserted their disinterest in divesting from the Chilcompton-founded brand. The board stated that after thorough consideration, the priority should remain on driving and reinforcing the commercial performance of the business.
Despite Frasers’ attempts, including a prior offer of £83 million which was dismissed for undervaluing Mulberry’s future potential, the board continues to rally its confidence behind its new chief executive, Andrea Baldo. A commitment to strengthening the company’s financial framework through a new debt facility and additional capital raising underpins its strategy for sustainable growth and resilience.
Acknowledging Frasers’ involvement in the recent fundraising, Mulberry’s board expressed appreciation for its supportive stance towards maintaining the brand’s value. Nevertheless, it also indicated anticipation for future interactions, suggesting further discussions may yet unfold.
As of the recent developments, Frasers has accumulated a 37.3% stake in Mulberry and faces an October 28 deadline to announce a definitive offer or withdraw. The delicate dynamics of business interests and shareholder expectations continue to shape the unfolding narrative as both entities consider their strategic positions.
Mulberry remains committed to its growth strategy despite Frasers’ increased bid.
