Mulberry has declined the second takeover proposal from Frasers Group, led by Sports Direct owner, Mr. Mike Ashley.
- Mulberry’s majority owner, Challice, stated it will not sell its stake, complicating potential acquisitions.
- A previous offer of £83m was also rejected, emphasizing Mulberry’s focus on future growth potential.
- The company intends to enhance its commercial performance under new CEO Andrea Baldo, supported by new funding.
- Frasers holds a significant share in Mulberry, with a deadline for a final offer set for October 28.
Somerset-based luxury fashion brand Mulberry has turned down the second acquisition offer from Frasers Group, controlled by Sports Direct owner Mike Ashley. This development comes amid increasing friction between Mulberry’s primary shareholders. The latest proposal, valued at £111 million, aligns with Mulberry’s strategic decision to concentrate on internal business strategies rather than external acquisition.
Challice, the majority stakeholder, confirmed its unwillingness to divest its 56.4% share, further complicating Frasers’ acquisition attempt. Owned by Singaporean business magnates Christina Ong and Ong Beng Seng, Challice’s decision substantially limits Frasers’ influence on the brand.
The initial bid from Frasers of £83 million was previously dismissed by Mulberry’s leadership, citing a failure to recognize the brand’s substantial future value. This indicates Mulberry’s confidence in its strategic direction and growth potential.
Under the leadership of newly appointed CEO Andrea Baldo, Mulberry is poised to embark on a growth trajectory backed by strengthened financials. A new debt facility and capital infusion are expected to stabilize and position the company for future market challenges. Mulberry’s board acknowledged Frasers’ participation in this financial restructuring as a positive sign of its commitment to maintaining brand value.
Frasers has a considerable 37.3% stake in Mulberry, reflecting its vested interest in the brand’s future. Nevertheless, Mulberry’s recent announcement was made independently of Frasers, underscoring its commitment to independent governance. Within the statutory framework, Frasers has been allotted until October 28 to present a definitive offer or cease its acquisition efforts.
The ongoing negotiations reflect Mulberry’s strategic focus on maintaining autonomy and enhancing its market position despite external acquisition attempts.
