Mulberry has declined the Frasers Group’s increased takeover offer, valued at £111 million, citing shareholder interests.
- The major shareholder, Challice, has clearly expressed no interest in selling its shares to Frasers Group.
- Mulberry’s board, along with advisors, deemed the offer untenable and chose to focus on business performance.
- Frasers Group made a revised cash offer of 150p per share earlier this month, up from an initial offer of £83 million.
- Frasers Group has a deadline until 28 October to make a firm offer or announce its intention not to proceed.
Mulberry has taken a firm stance in rejecting the increased takeover bid from Frasers Group, valued at £111 million. This decision was influenced by the position of its major shareholder, Challice, who publicly stated their disinterest in selling shares or committing to any undertakings with Frasers.
After a comprehensive evaluation with its advisors, Mulberry’s board unanimously agreed that the proposed offer was not feasible. The board emphasises that the company’s primary focus should remain on boosting its commercial performance, rather than engaging in a takeover.
The revised cash offer from Frasers Group involved purchasing shares at a price of 150p each, an increase from the prior proposal of £83 million. This adjustment highlights Frasers Group’s intent to acquire Mulberry, though the offer remains unaccepted.
Challice’s disinclination to cooperate with Frasers’ bid underscores a significant barrier to any potential acquisition. Mulberry has reiterated its strategic direction, including the appointment of a new CEO and a new debt facility designed to secure long-term growth.
Frasers Group faces a deadline of 28 October to present a decisive offer or declare its withdrawal from the takeover pursuit, adding a layer of urgency to their strategic considerations.
Mulberry remains committed to independent growth, amidst ongoing acquisition interest from Frasers Group.
