Mulberry Rejects £111m Takeover Offer from Frasers Group
Mulberry, the luxury handbag maker, has turned down a £111 million takeover bid from Mike Ashley’s Frasers Group. The London-listed fashion company revealed on Monday that its largest shareholder has declined the fresh offer.
In response to the bid, Mulberry stated that it is consulting with advisors from Houlihan to assess its options and will release further details in the near future. Frasers Group had raised its offer to £111 million, proposing to buy Mulberry at 150p per share. This comes after an initial bid of 130p per share, valuing Mulberry at £83 million, was rejected earlier this month.
Frasers Group, which already holds a 37% stake in Mulberry, has been expanding its presence in the luxury sector, with investments in brands like Hugo Boss. Despite their increased offer, Mulberry’s major shareholder, Challice, controlled by Singaporean entrepreneurs Christina Ong and Ong Beng Seng, has stated that they are not interested in selling their stake to Frasers.
Challice, holding approximately 56% of Mulberry’s shares, plays a key role in any potential takeover deal as their approval is crucial for its success. They made it clear that they have no intention of selling to Frasers and believe that the current moment is not suitable for Mulberry to be sold. Challice also expressed concerns about the distraction the takeover bid is causing for the company.
The ongoing developments between Mulberry and Frasers Group have attracted significant attention within the fashion and business communities. Shareholders and industry experts are eagerly waiting for the next steps that Mulberry will take in response to the rejected offer from Frasers Group.
Stay tuned for further updates on this developing story as Mulberry navigates its way through the intricacies of the takeover bid by Frasers Group.