Mulberry has declined Frasers’ revised £111m takeover proposal, marking the second rejection from the Somerset-based handbag company.
- The luxury brand remains committed to enhancing its commercial performance despite takeover attempts by Frasers Group, which owns Sports Direct.
- Majority stakeholder Challice, owned by Christina Ong and Ong Beng Seng, expressed no intention of selling their 56.4% stake in Mulberry.
- Frasers, led by Mike Ashley, holds a 37.3% interest in Mulberry, with a deadline approaching to make a formal offer.
- Mulberry’s board is focussed on future growth strategies under new leadership and a strengthened financial position.
Mulberry, a renowned handbag manufacturer headquartered in Somerset, has declined a revised takeover bid of £111 million from Frasers Group, which owns Sports Direct. This marks the second time Mulberry has turned down an offer from Frasers, following an earlier bid of £83 million that was also rejected.
The luxury brand decided to focus on augmenting its commercial performance rather than accepting the proposal. The decision was unanimous among its board members who, after deliberation, deemed the offer ‘untenable.’ They are confident in Mulberry’s future potential and have expressed this through their commitment to the company’s growth.
Challice, the majority owner of Mulberry with a 56.4% stake, is a firm grounded by Singaporean business figures Christina Ong and Ong Beng Seng. Challice has conveyed a clear message of disinterest in selling its shares, reinforcing the stance against the takeover bids.
Frasers, led by entrepreneur Mike Ashley, has increased its stake to 37.3% in Mulberry, reflecting a vested interest in the brand’s operations. Despite this, Mulberry remains intent on pursuing its growth strategies and strengthening its market position.
The board, under the leadership of new chief executive Andrea Baldo, plans to utilise a new debt facility and capital raising to secure a strong foundation for future growth. They appreciate the support shown by Frasers in recent fundraising efforts and anticipate further dialogue.
Frasers Group, under takeover regulations, is required to decide by 28 October whether to formalise an offer or cease their efforts. Mulberry has chosen to announce its stance independently, highlighting its strategic focus on internal development.
Mulberry remains steadfast in its growth ambitions, prioritising internal strategies over external takeover offers.
