Mulberry has decisively rejected Frasers Group’s £111m takeover bid, citing no interest from its leading shareholder.
- Challice, holding a 56% stake in Mulberry, remains firm against selling shares to Frasers Group.
- Frasers Group’s increased bid of 150p per share follows an earlier offer that was also turned down.
- Without Challice’s backing, Frasers Group’s acquisition of Mulberry seems unlikely.
- Challice supports the current management and vision for Mulberry, seeking no further takeover discussions.
Mulberry, the luxury handbag retailer, has resolutely declined an increased acquisition offer from Frasers Group, amounting to £111 million. This decision was underscored by the firm stance of Challice, Mulberry’s largest stakeholder, which has communicated unequivocally its lack of interest in selling its shares or engaging in further takeover undertakings. Challice’s assertion puts Frasers Group, already owning a 37% stake, in a challenging position, rendering any hostile takeover attempts seemingly unviable without Challice’s consent.
Frasers Group had raised its offer to 150 pence per share after its previous bid, valuing Mulberry at £83 million or 130 pence per share, was not accepted earlier in the month. This escalation highlights Frasers Group’s ambition to secure a controlling stake in Mulberry, yet it lacks the crucial support of Challice, who holds 56% of Mulberry’s shares.
Last week, Frasers Group participated in Mulberry’s fundraising round, purchasing £3.9 million in new shares, which indicates its continued interest and investment in the company. Despite these efforts, Challice perceives this period as ill-suited for selling Mulberry and expresses concern about the distractions such buyout propositions pose to the company’s strategic focus.
The appointment of CEO Andrea Baldo and the recent successful capital raise of £10.75 million have fortified Mulberry’s capacity to execute a strategic turnaround and reinforce its market position. Challice supports the current leadership and their long-term strategies, discouraging further acquisition dialogues that might disrupt the company’s trajectory.
Challice has articulated a clear message to Frasers Group, expecting it to retract its offer and cease acquisition attempts. This standpoint accentuates Challice’s belief in Mulberry’s enduring value and its commitment to the retailer’s progressive future without external ownership interference.
Challice’s firm stance signals a strong future alignment with Mulberry against external takeover bids.
