In a strategic move, Frasers Group has increased its stake in Mulberry shortly after attempting a takeover.
- The group subscribed to 4.0 million shares at 100p each, utilizing clawback provisions.
- Mulberry had previously rejected Frasers’ £83m takeover proposal.
- Despite the rejection, Frasers has strategically increased its ownership in Mulberry.
- Mulberry intends to collaborate with Frasers on future share subscriptions.
In an assertive financial maneuver, Frasers Group has expanded its holdings in the luxury fashion retailer Mulberry. This development comes on the heels of a failed takeover attempt. The group, led by Mike Ashley, capitalized on clawback provisions available to major shareholders, subscribing to an additional 4.0 million shares priced at 100p each.
Prior to this, Frasers had made a notable move by proposing a takeover offer valued at £83 million, equating to a premium of 130p per share. However, this offer was rebuffed by Mulberry’s board, supported by its principal shareholder, Challice, which assessed the proposal as undervaluing Mulberry’s future potential.
The rejection of the offer did not deter Frasers Group. By acquiring more shares, the group has increased its representation in Mulberry to over 37%. This strategic move is seen as a way to solidify its influence within the company, despite the previous setback.
Mulberry’s management expressed no intent to retract their ongoing £10 million fundraising initiative. Subsequently, Mulberry is open to collaboration with Frasers on future share subscription plans, suggesting a complex but potentially cooperative relationship between the two entities.
Frasers Group’s persistent investment in Mulberry underscores its strategic determination to strengthen its influence in the luxury fashion sector.
