Frasers Group’s £111m offer for Mulberry has been declined, highlighting the complexities in the luxury brand’s shareholder dynamics.
- Challice, the majority owner of Mulberry, has firmly rejected Frasers Group’s increased offer, citing the current period as inopportune for a sale.
- The Board of Mulberry is considering the situation with their advisors, leaving the possibility of a new offer uncertain.
- Previously, Frasers Group’s initial £83m bid was similarly rejected, despite their subsequent increase in shareholding.
- Ger Wright, a notable figure in the Frasers Group, is transitioning from her role as managing director of sport.
Frasers Group has made headlines with its substantial £111m bid for luxury brand Mulberry, a move that has been firmly declined by Mulberry’s majority shareholder, Challice. This event underscores the complex dynamics between stakeholders, particularly given Challice’s 56.4% holding in the company. On Friday, 11th October, Frasers increased its offer after an earlier £83m proposal was turned down.
Challice described the timing as unsuitable for such a sale, indicating that the potential transaction could divert focus from Mulberry’s operations. Challice’s statement clarified their disinterest in selling its shares to Frasers or engaging in any form of agreement regarding the offer. They expressed a hope that a clear stance might dissuade Frasers from pursuing further acquisition attempts.
Following this, Mulberry’s board issued a statement acknowledging the current situation and mentioning that discussions with advisors are ongoing. This advisory phase leaves ambiguity regarding any future offers, and the board emphasised that there is no guarantee of an offer materialising or what the terms might entail.
Frasers Group has already been active in the market, purchasing 3.93 million shares of Mulberry through a clawback arrangement, enhancing their stake slightly to 37.2%. Despite this, Frasers faces a deadline of 5pm on 28th October to propose a definitive offer for Mulberry, a challenging task given the prevailing shareholder sentiment.
Additionally, Ger Wright’s upcoming departure from her managing director role at Frasers Group, effective 30th November, draws attention. As a non-executive director, her contributions have been lauded, especially in executing the group’s elevation strategy in sports, an area that has seen significant development under her leadership.
The situation between Frasers Group and Mulberry remains unresolved, with significant implications for both parties.
