Mulberry’s majority shareholder firmly rejects takeover bid from Mike Ashley’s Fraser Group.
- Challice owns a controlling 56.4% of Mulberry, thwarting Fraser’s increased offer.
- Frasers Group now holds 37.3% of Mulberry after acquiring additional shares.
- The board is deliberating Mulberry’s strategic position amidst takeover interest.
- CEO Andrea Baldo is spearheading efforts to revitalise the brand.
The controlling shareholder of Mulberry, Challice, has expressed unequivocally its lack of interest in selling its stake to Mike Ashley’s Fraser Group. This decision comes despite an improved offer for the firm, valuing it at £111 million. Challice, steered by Singaporean business figures Christina Ong and Ong Beng Seng, holds a significant 56.4% stake, granting it substantial influence over such strategic decisions.
Challice’s outright rejection follows Fraser Group’s second attempt to acquire Mulberry, a well-known handbag maker headquartered in Somerset. The initial offer was dismissed as it failed to adequately recognise the prospective value of the company. Challice conveyed that it considers this period unfavourable for a sale and voiced concerns over the management team’s distraction due to the ongoing takeover discussions.
In a move to strengthen its influence, Fraser Group recently increased its shares in Mulberry by acquiring 3.9 million shares at 100 pence each, boosting its stake to 37.3%. Despite this growing interest, Challice remains resolute against any commitments or undertakings related to the potential offer.
Mulberry’s board, responding to the takeover overtures, is currently engaged with advisors to thoroughly evaluate the company’s options. The board made it clear in a statement that no concrete offer might be forthcoming and that the terms of any potential bid remain uncertain. This corporate contemplation underscores the tenuous nature of such transactions in the retail sector.
The brand, founded by Roger Saul in 1971, has recently appointed Andrea Baldo as chief executive, who is tasked with navigating the company through these challenging times. Baldo’s leadership is aimed at driving a turnaround strategy for the brand, which has experienced financial setbacks. Frasers has until October 28 to decide on proceeding with its acquisition intent or withdrawing it.
Mulberry stands firm in its decision to remain independent from Fraser Group’s acquisition efforts.
