Handbags as Frasers’ increased takeover plans for Mulberry adds to war of words
Mulberry Group is expected to rebuff renewed attempts by Frasers Group to takeover the struggling retail brand.
Sports Direct owner Frasers Group, which has built a portfolio of distressed brands, put forward terms for an updated offer on Friday.
Its 150p-per-share proposal was 15% higher than its first approach and would see Frasers pay £72m for the shares that it doesn’t own. Frasers has built a 37% stake in the business.
However majority shareholder Challice, which owns 56% of Mulberry, has said it “has no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking”.
Mulberry itself has acknowledged Challice’s statement and said its board is “working with advisers to consider the company’s position”.
Frasers is required to confirm if it intends to make an offer or not by October 28.
Frasers has expressed its frustration that Mulberry raised £10m at 100p-per-share earlier this month, but blocked the 130p-per-share proposal days later.
It said: “Despite…Mulberry’s catastrophic results, its necessity for emergency funding and difficult market backdrop, Frasers strongly believes it can provide the appropriate insulation and investment to support a much-loved British brand.
“As part of the Frasers portfolio, the Mulberry brand would be provided with the platform to ensure its long-term survival and success.”