The British luxury brand, Mulberry, has turned down an £83 million takeover proposal from Frasers Group. The decision reflects the views of Mulberry’s majority shareholder, Challice, who expressed no interest in the offer.
- Frasers Group’s proposal valued Mulberry shares at 130 pence each, representing a 30% premium over their recent offer price.
- Mulberry’s board believes the proposal undermines the company’s substantial future potential.
- Frasers Group currently holds a 37% stake in Mulberry, aiming to consolidate its control.
- Following the bid’s rejection, Mulberry’s share price slightly increased to 121 pence.
Mulberry, a renowned name in the British luxury sector, has decisively rejected an acquisition proposal estimated at £83 million from Frasers Group. This move aligns with the position of Challice, Mulberry’s majority shareholder, who indicated a lack of enthusiasm for the potential offer.
The proposal tabled by Frasers Group valued Mulberry shares at 130 pence each, marking a significant increase—a 30% premium over the 100 pence subscription price during the firm’s recent retail offer. Additionally, this offer was 11% higher than Mulberry’s closing share price of 118 pence, recorded the previous Friday.
Mulberry’s board denounced the bid, stating it fell short of recognising the substantial future potential the brand holds. They assured stakeholders of future notifications concerning the company’s strategic direction as deemed necessary.
Frasers Group, led by Mike Ashley, currently possesses a 37% ownership in Mulberry and intended this offer to solidify its position within the company.
In light of the board’s dismissal of the offer, Mulberry’s share value experienced a modest rise, trading at 121 pence on the morning following the announcement.
Mulberry remains focused on its long-term strategic goals, undeterred by external acquisitions.
