Frasers Group has significantly increased its takeover bid for Mulberry to £111 million.
- The revised offer represents a 50% premium on Mulberry’s recent fundraising price.
- Mulberry’s board previously rejected a £83 million bid citing potential underestimation of value.
- Frasers Group has increased its shareholding to over 37% following recent acquisitions.
- The group has until 28 October to make a binding offer or withdraw its bid.
In a strategic move, Frasers Group has raised its takeover bid for Mulberry to £111 million, marking a significant increase from the initial offer of £83 million. The new proposal offers a 50% premium on Mulberry’s recent fundraising price, highlighting Frasers Group’s commitment to acquiring the luxury retailer.
Previously, Mulberry’s board rejected the initial bid from Frasers, labelling the £83 million offer as insufficient and not reflective of the company’s substantial future potential. This rejection appears to have prompted the revised offer, which is set to entice shareholders with its substantial premium.
The takeover bid comes amid Frasers Group’s efforts to consolidate its stake in Mulberry. Recently, Frasers acquired approximately four million Mulberry shares at 100 pence each, slightly increasing its shareholding to between 36.9% and 37.3%. This purchase aligns with the group’s strategy to strengthen its position within the luxury goods sector.
Under UK takeover regulations, Frasers Group now faces a deadline of 28 October to formalise its offer for Mulberry or to retract its bid entirely. This requirement adds urgency to the ongoing negotiations and strategic decision-making.
Simultaneously, Frasers Group has shown interest in diversifying its investment portfolio, as demonstrated by a recent £10 million acquisition of shares in the online retail group THG, which is currently undergoing a substantial fundraising initiative.
The coming weeks will be critical in determining the outcome of Frasers Group’s ambitious acquisition endeavour.
