Frasers Group has significantly increased its takeover bid for Mulberry following an initial rejection.
- The revised offer values Mulberry at £111 million, up from £83 million.
- Frasers’ new bid offers a 50% premium per share, enhancing its previous offer.
- Mulberry’s board remains cautious about its substantial future potential value despite the increased bid.
- Frasers has also invested in THG shares as part of a broader strategic manoeuvre.
Frasers Group has raised its takeover bid for Mulberry, proposing to acquire the luxury handbag retailer at a new valuation of £111 million. This move comes shortly after Mulberry’s board dismissed an earlier proposal that stood at £83 million. The revised offer, submitted on 10 October, includes a significant increase, with shareholders being offered 150p per share in cash. This offer represents a 50% premium on Mulberry’s recent fundraising price, reflecting Frasers’ aggressive pursuit of the acquisition.
On 1 October, Mulberry’s board rejected the initial offer from Frasers Group. The board stated that the bid did not recognise the company’s substantial future potential value, highlighting Mulberry’s ongoing strategic plans and market position as pivotal factors in their decision. Frasers’ increased bid indicates its determination to acquire Mulberry, with ownership currently standing between 36.9% and 37.3% following recent share acquisitions.
In a related development, Frasers Group has acquired approximately four million Mulberry shares at 100p each via clawback provisions. This acquisition slightly increased its stake in Mulberry, showcasing a tactical approach in securing a more significant shareholding in the company. Frasers’ manoeuvre aligns with its broader acquisition strategy.
Further expanding its investment portfolio, Frasers Group has purchased £10 million worth of shares in the online retailer THG. This investment is part of THG’s substantial £95.4 million fundraising effort aimed at splitting off its technology division, Ingenuity. The equity raise exceeded THG’s initial target of £75 million, indicating strong investor interest and support. CEO Matthew Moulding played a crucial role, contributing £10 million personally to the fundraise.
Under UK takeover rules, Frasers Group has until 28 October to make a definitive offer for Mulberry or withdraw its interest. This timeline places additional pressure on Frasers to finalise its strategic intentions with both Mulberry and its broader investment activities.
Frasers Group’s increased bid for Mulberry and its investment in THG highlight its strategic efforts to strengthen its market position.
