Mulberry has decided to reject the increased takeover bid from Frasers Group, emphasizing its commitment to future growth.
- The luxury handbag retailer finds the proposition untenable after considering majority shareholder Challice’s firm stance against selling shares to Frasers.
- Frasers Group had revised its offer earlier this month, valuing it at £111 million, an increase from the original £83 million bid.
- Mulberry focuses on strengthening its future through strategic leadership appointments, new debt facilities, and capital raising efforts.
- The deadline for Frasers Group to make a firm offer or withdraw it is set for October 28.
Mulberry, a renowned luxury handbag retailer, has taken a definitive stance by rejecting the increased acquisition bid proposed by Frasers Group. This decision was shaped predominantly by the position of its majority shareholder, Challice, who explicitly expressed disinterest in selling its Mulberry shares or offering any support to Frasers’ prospects. In a clear statement, Mulberry has delineated its strategic outlook, emphasizing that the potential offer from Frasers is untenable.
Earlier this month, Frasers Group advanced a renewed cash offer valued at 150 pence per share for the shares it does not already own. This adjustment elevated the proposed bid to a compelling £111 million, significantly higher than the prior £83 million offer. Despite the increased valuation, Mulberry reiterated an earlier assertion that its recent strategic maneuvers—namely, the appointment of a new Chief Executive Officer, securing a new debt facility, and successfully launching capital raising initiatives—have poised the company robustly for ongoing growth and development.
The decision comes amidst rising tensions between Mulberry’s major stakeholders and the group led by Flannels’ owner. Mulberry’s unwavering focus remains on bolstering its commercial performance without succumbing to the takeover proposition, highlighting its autonomy and strategic priorities. The board underscores its collective agreement, backed by professional advisement, recognizing the proposal as incompatible with Mulberry’s long-term business objectives.
Frasers Group, facing a strict timeline, has until October 28 to either formalize its offer or publicly declare its intention to cease pursuit. This deadline adds a layer of urgency to the proceedings, putting both companies under the spotlight as the retail industry keenly observes the unfolding developments.
Mulberry’s rejection of the increased bid reinforces its strategic independence and future-oriented growth plans.
