Frasers Group has ceased its takeover bid for Mulberry, highlighting governance issues.
- Frasers holds a 37% stake in Mulberry and proposed a new cash offer.
- The board deemed the offer unsustainable and rejected it unanimously.
- Concerns over Mulberry’s financial position and governance are cited by Frasers.
- Frasers seeks representation on Mulberry’s board despite retracting its bid.
Frasers Group has announced its decision to withdraw a takeover offer for Mulberry due to governance concerns. The decision follows a unanimous rejection of the bid by Mulberry’s board, which found the proposal unsustainable. Frasers Group, which currently owns 37% of Mulberry, had submitted a revised cash offer earlier in the month, proposing 150p per share for the remaining shares, valuing Mulberry at approximately £111 million.
The decision by Mulberry’s board to reject the offer was based on their assessment of the company’s strategic direction. Frasers described the outcome as disappointing but maintained its commitment to support Mulberry in the long term. The group voiced concerns regarding Mulberry’s governance and the lack of a substantial commercial strategy amidst challenging market conditions. The financial state of Mulberry was also highlighted as a critical factor in Frasers’ decision to terminate the bid.
Furthermore, Frasers expressed apprehension about the board’s exclusive discussions with Challice over significant issues, such as the recent emergency subscription of £10 million, and urged for a more inclusive approach.
Despite withdrawing its takeover bid, Frasers has called for the appointment of a representative from their group to join the Mulberry board, indicating their intention to remain actively involved in the company’s governance and strategic planning.
Frasers Group has chosen to step away from its acquisition attempt but remains invested in Mulberry’s future direction by seeking board representation.
