Mulberry’s largest shareholder has dismissed Frasers Group’s latest £111 million bid, maintaining its stance against selling.
- Challice, owning 56% of Mulberry, has declared no interest in selling shares to Frasers or making any commitments about a potential offer.
- Without Challice’s backing, Frasers Group cannot succeed in its takeover attempt, a fact they’ve openly acknowledged.
- Despite increasing their offer to 150p per share, Frasers Group’s bid follows a previously rejected offer earlier this month.
- The timing of Frasers’ bid coincides with recent changes at Mulberry, including a new CEO and a substantial cash injection.
Mulberry’s principal shareholder, Challice, has definitively turned down an enhanced bid of £111 million from Frasers Group for the luxury handbag retailer. Expressing a clear stance, Challice reiterated, “Challice has no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking with regards to the possible offer.” As a majority stakeholder with a 56% share, Challice’s decision effectively blocks any takeover attempt by Frasers, who currently holds 37% of Mulberry shares.
Frasers Group increased their offer to 150p per share following a previous £83 million bid that was promptly turned down at the start of October. Despite their efforts to engage with Challice, the lack of interest from Mulberry’s main shareholder makes a takeover impractical. Challice commented that it “hopes that by making its position clear, Frasers will be encouraged to announce that it does not intend to make an offer for Mulberry.”
In recent developments, Frasers had participated in Mulberry’s recent fundraising by purchasing £3.9 million worth of new shares. Meanwhile, Mulberry is undergoing significant strategic changes, with the recent appointment of CEO Andrea Baldo and a cash raise of £10.75 million intended to support the retailer’s turnaround efforts.
Challice believes it is an inopportune moment to sell Mulberry. The shareholder expressed regret over the potential distraction the possible offer presents to the company’s operations and its leadership. It confirmed its support for Mulberry’s current management and a commitment to the long-term growth and stability of the business.
Mulberry remains firm against Frasers Group’s advances, backing its future plans and leadership amid strategic changes.
