Frasers Group has announced significant developments regarding its investments in N Brown and Mulberry, showcasing its strategic financial manoeuvres.
- Frasers Group confirmed an agreement to support the acquisition of N Brown by Falcon 24 Topco, marking a significant change in its investment portfolio.
- The Group’s 20.3% stake in N Brown will see a cash payout with an alternative option for shareholders to receive shares in Bidco.
- Frasers also upped its bid for luxury brand Mulberry, although it faces challenges from Mulberry’s major stakeholder Challice.
- The Group continues to await formal feedback from Mulberry’s board regarding its revised acquisition proposal.
Frasers Group has recently articulated its support for the acquisition of N Brown Group by Falcon 24 Topco, a venture steered by Lord Joshua Alliance. This development follows the announcement on 17 October of an irrevocable undertaking to approve the recommended cash purchase. Shareholders, including Frasers Group, which holds 94.8 million shares (amounting to a 20.3% stake), will receive 40 pence per share in cash. Alternatively, eligible shareholders can opt to receive one unlisted ordinary share in Bidco’s capital for each N Brown share they hold.
Additionally, Frasers is persistently working towards acquiring Mulberry, a renowned luxury brand. The Group, currently the second-largest shareholder with a 37% stake, increased its offer to £111 million, equating to 150 pence per share, following an initial bid of £83 million. However, this revised proposal is pending formal feedback from the Mulberry board.
Challice, owning 56.4% of Mulberry’s shares, has voiced concerns, deeming the timing of the potential sale as inconvenient and expressing regret over the distraction caused to Mulberry’s operations and management. In response, Frasers has sought direct engagement with Challice to address these concerns and advance its acquisition bid.
Frasers emphasises that the acquisition of Mulberry warrants serious consideration, despite the prevailing concerns from Challice. The company remains optimistic about resolving outstanding issues to proceed effectively with its investment strategy.
Frasers Group continues to navigate its strategic investments effectively, addressing shareholder interests while seeking opportunities for growth and acquisition.
