Frasers Group has raised its stake in Mulberry, stirring intrigue following an acquisition attempt.
- Frasers Group acquired an additional 3.93 million Mulberry shares at 100 pence each, shortly after a rejected takeover bid.
- Mulberry’s proposed fundraising was reportedly unknown to Frasers Group until just before its announcement, sparking criticism.
- Ong Beng Seng, Mulberry’s majority owner, faces charges in a Singaporean court related to a gifting scandal.
- Mulberry’s founder, Roger Saul, suggests LVMH as a better fit for Mulberry than Frasers Group.
In a significant move, Frasers Group has successfully increased its stake in Mulberry by purchasing 3.93 million additional shares for 100 pence each. This development follows a rejected £83 million takeover bid aimed at acquiring Mulberry, a London-listed luxury handbag maker.
Earlier reports had indicated that Mulberry was planning to raise £10 million through the issuance of new ordinary shares and a retail offer worth up to £750,000. However, Frasers Group expressed dissatisfaction over learning about this proposed fundraising only just before it was publicly announced, criticising Mulberry for its ‘total lack of engagement.’
Frasers Group stated categorically, ‘[We] will not accept another Debenhams situation where a perfectly viable business is run into administration.’ Meanwhile, Frasers Group’s stake in Mulberry has marginally increased from 36.8% to 37.2%, through a ‘clawback’ arrangement for major shareholders.
A further twist in this saga is the legal trouble facing Ong Beng Seng, Mulberry’s majority owner, who has been charged with obstruction of justice and abetment in Singapore. These charges are connected to an ongoing gifting scandal involving a former transport minister in Singapore.
On the acquisition front, Mulberry’s founder, Roger Saul, has voiced that he sees LVMH as a more suitable partner for Mulberry than Frasers Group. He emphasised the need for Mulberry to return to the ‘spirit of the brand as a whole.’
Financially, Mulberry reported a loss before tax of £34.1 million in its recent financial results, a downturn from a £13.2 million profit the previous year, with revenue falling 4% to £152.8 million due to a challenging second half.
The unfolding developments underscore a complex struggle between Frasers Group and Mulberry’s stakeholders.
