The luxury brand Mulberry has dismissed an £83m takeover bid from Frasers Group.
- Frasers Group’s offer represented a 30% premium on Mulberry’s previous share subscription price.
- Mulberry’s board cited the undervaluation of the brand’s potential as a reason for rejection.
- The majority shareholder, Challice, expressed disinterest in supporting the bid.
- Following the announcement, Mulberry’s share price saw a slight increase.
Yesterday, Mulberry, the renowned luxury brand, formally rejected an £83 million takeover offer from the Frasers Group. This decision was publicised after careful consideration by Mulberry’s board, which articulated their stance that the proposal did not adequately reflect the brand’s substantial future potential value.
Frasers Group, which already possesses 37% of Mulberry’s shares, proposed a cash acquisition at 130p per share. This offer was 30% higher than Mulberry’s last retail share subscription price of 100p and exceeded the closing share price of 118p by 11% as of last Friday.
The leading shareholder, Challice, has firmly stated that they had “no interest in supporting the possible offer”, indicating a major hurdle for Frasers Group in consolidating its ownership of the luxury fashion label.
Following the rejection of the offer, Mulberry’s shares experienced a minor uplift, trading at 121p early the next day. This shift reflects a market response to the announcement, signalling confidence in Mulberry’s independent trajectory.
Prior to the takeover news, Mulberry had declared an intention to raise £10 million through the issuance of new ordinary shares and a retail offer worth up to £750,000, underscoring its strategy to capitalise and grow independently.
The rejection of Frasers Group’s bid by Mulberry underscores its commitment to maintaining strategic independence and unlocking its potential value.
