Challice, the main shareholder of Mulberry, dismisses take-over attempts by Frasers Group, led by Mike Ashley.
- Frasers Group’s renewed £111 million bid follows an earlier rejected offer for the iconic handbag brand.
- Challice’s 56.4% stake in Mulberry positions it to block further acquisition proposals.
- The distraction of potential acquisition is considered untimely by Challice, impacting business focus.
- Frasers has until October 28 to make a final decision on continuing its acquisition attempts.
Mulberry’s shareholders have significantly commented on a recent takeover approach from Frasers Group. The primary shareholder, Challice, has expressed an unwavering disinterest in selling their stake in the company to Mike Ashley’s conglomerate, despite increased offers.
Challice, which maintains a controlling 56.4% stake in Mulberry, has articulated its resolve against parting with its shares. This position enables Challice to reject any further takeover propositions. Such resistance comes in the wake of a renewed bid from Frasers, valuing the fashion brand at £111 million, which follows a former offer that had already been dismissed.
In an official response, Challice stated it considers the current moment unsuitable for selling Mulberry and lamented the distraction the potential acquisition poses to the business. “Challice has no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking with regards the possible offer,” the company articulated, underscoring its firm stance.
Despite Frasers increasing its Mulberry shareholding to 37.3% by acquiring an additional 3.9 million shares, Mulberry’s board is reportedly engaged with advisors to evaluate the business’s strategic path forward. A future announcement is anticipated, though the board emphasises that certainty regarding any prospective offer remains elusive.
Founded in Somerset, Mulberry has been guided by CEO Andrea Baldo, tasked with revitalising the business amidst financial challenges. Frasers has until October 28 to decide on progressing with another bid or retracting its pursuit, a critical deadline that signals the potential closure of this acquisition chapter.
Mulberry’s sale remains uncertain, with Challice standing firm against Frasers’ acquisition efforts.
