Frasers Group has thrown its weight behind a takeover bid for N Brown, the owner of Jacamo and Simply Be, as it continues its pursuit of luxury brand Mulberry.
The retail conglomerate, headed by Mike Ashley and known for its Sports Direct and Flannels brands, currently holds a 20.3% stake in N Brown, a London-listed company. Frasers Group recently announced its support for a £191 million takeover deal by Joshua Alliance, a family group with historical ties to N Brown.
As part of the agreement, Frasers Group intends to sell its stake in N Brown to Joshua Alliance for £40 per share, resulting in a £37.9 million windfall. The company expressed its anticipation to maintain a strategic partnership with Joshua Alliance and N Brown following the acquisition.
In addition to the N Brown takeover, Frasers Group provided an update on its ongoing efforts to acquire Mulberry, a renowned handbag maker. Despite a previous rebuff from Mulberry over an £83 million offer, Frasers Group submitted an improved bid valuing the fashion brand at approximately £111 million.
While the majority shareholder of Mulberry, Challice, controlled by Singaporean entrepreneurs Christina Ong and Ong Beng Seng, expressed disinterest in selling to Frasers, the conglomerate highlighted the importance of its revised proposal receiving thoughtful consideration. Frasers Group also indicated its intention to engage directly with Challice regarding the offer.
The developments in the retail landscape underscore Frasers Group’s strategic positioning as it navigates significant acquisitions and partnerships in pursuit of expansion and growth within the industry.