Challice, Mulberry’s majority shareholder, firmly rejects Fraser Group’s acquisition propositions, valuing independence over external control.
- Challice, led by Christina Ong, holds 56.4% of Mulberry and effectively blocks unwanted takeovers, prioritizing Mulberry’s potential.
- Challice criticized Fraser Group’s increased offer, emphasizing the negative distractions it imposes on Mulberry’s management team.
- Fraser Group raised its stake to 37.3% following failed acquisitions, leaving the future of Mulberry’s ownership uncertain.
- Mulberry’s board collaborates with advisors for strategic guidance, as Fraser’s October 28 deadline looms for a renewed offer.
Challice, the controlling stakeholder of Mulberry, has made it clear that it is not interested in selling its shares to Fraser Group, led by Mike Ashley. This stance comes amid Fraser’s increased efforts to acquire Mulberry following a second bid that values the company at approximately £111 million. Challice, owned by the influential Singaporean business duo Christina Ong and Ong Beng Seng, holds a significant 56.4% stake, enabling them to veto any unwanted acquisitions.
Challice highlighted that this moment is unsuitable for selling Mulberry, citing the distractions caused by Fraser’s unsolicited offers as detrimental to the company’s focus and management. This statement further underscores Challice’s intention to shield Mulberry from external control while maintaining its trajectory towards realizing inherent potential value that they believe remains unrecognized.
On the other hand, Fraser Group has not stepped back completely. Upon the rejection of its bid, Fraser quickly responded by purchasing 3.9 million shares at 100 pence each, bolstering its holding to 37.3%. This strategic move indicates a persistent interest in Mulberry, leaving industry observers wondering about the group’s next steps.
In response to these developments, Mulberry’s board is actively consulting its advisors to navigate this challenging situation. Acknowledging the uncertainty, they assured that further updates would be forthcoming. The procedural deadline set for Fraser to either initiate another offer or withdraw is October 28, heightening anticipation within the financial sector.
Mulberry, a brand with deep-rooted heritage established in 1971 by Roger Saul in Somerset, is at a crucial juncture. The company is relying on the leadership of its newly appointed CEO, Andrea Baldo, to spearhead a turnaround. Despite the ongoing takeover tussle, Mulberry’s strategic focus remains on rejuvenating its brand and operational profitability.
Mulberry’s future now hinges on decisions by its board and Fraser’s next strategic steps before the imminent deadline.
