Frasers Group’s recent maneuvers have made headlines as it heightens its stake in Mulberry amid unfolding developments.
- On October 7, Frasers Group confirmed the purchase of an additional 3.93 million shares in Mulberry.
- Frasers Group attempted an £83m takeover of Mulberry, which was initially rejected.
- The Malaysian billionaire owner of Mulberry, Ong Beng Seng, faces legal charges related to a gifting scandal in Singapore.
- Mulberry founder Roger Saul suggests LVMH would be a better fit for the brand amidst the Frasers Group takeover bid.
On October 7, 2024, Frasers Group announced an increase in its stake in the esteemed luxury retailer Mulberry, obtaining an additional 3.93 million shares at 100 pence per share. This action comes in the wake of a series of strategic and conspicuous attempts to acquire Mulberry.
Despite Frasers Group’s efforts, Mulberry rebuffed an £83 million takeover proposition from the group earlier. The proposed acquisition faced obstacles partly due to what Frasers Group described as Mulberry’s ‘total lack of engagement.’
Adding complexity to the situation, Mulberry’s majority stakeholder, the Malaysian billionaire Ong Beng Seng, has been charged with obstruction of justice and abetment in relation to a gifting scandal involving a former Singaporean minister. His legal challenges may impact Mulberry’s strategic decisions moving forward.
Furthermore, Roger Saul, the founder of Mulberry, has publicly weighed in on the situation. He perceives LVMH, a giant in the luxury market, as a more suitably aligned partner for Mulberry. Saul emphasizes a return to the core values and spirit that originally defined Mulberry as pivotal for its future.
Mulberry’s financial standing reflects challenges, as highlighted in its latest full-year financial report, which disclosed a swing to a pre-tax loss of £34.1 million from a prior year’s profit. This shift, coupled with a 4% revenue decline, depicts the hurdles confronting this iconic British brand.
The unfolding events surrounding Frasers Group and Mulberry mark a significant chapter in the luxury retail sector, with each development reshaping future trajectories.
