Frasers Group has made a significant move by acquiring more shares in Mulberry shortly after its takeover offer was turned down.
- The group subscribed for 4 million shares at 100p each, asserting their interest despite setbacks.
- Frasers previously held 22.1 million shares, representing just under a 37% stake in Mulberry.
- The rejected £83m takeover bid was seen as undervaluing Mulberry’s future potential.
- Mulberry plans to maintain its £10m fundraising strategy despite Frasers’ increased investment.
Frasers Group has strategically expanded its stake in Mulberry, acquiring an additional 4 million shares shortly after its initial takeover proposal was rejected by the luxury fashion retailer. This decisive acquisition, priced at 100p per share via clawback provisions, comes in the wake of Frasers’ aggressive bid to gain more control over Mulberry.
Prior to this transaction, Frasers held 22.1 million shares, accounting for just under a 37% stake. The latest share purchase incrementally boosts their stake beyond 37%, strengthening their influence within the company.
Mulberry’s board, supported by majority shareholder Challice, rejected Frasers’ £83m acquisition offer, which valued the company at a 30% premium over its recent share price. The board concluded that the proposal did not adequately reflect Mulberry’s significant future growth prospects.
Despite Frasers’ discontent with this decision, Mulberry remains committed to its £10m fundraising initiative, choosing not to alter its current financial strategy in response to the increased stake by Frasers.
Furthermore, Mulberry has indicated a willingness to collaborate with Frasers regarding the share subscription process, maintaining a diplomatic approach amidst the ongoing negotiations.
The strategic movements between Frasers Group and Mulberry highlight the ongoing complexities in corporate acquisitions and shareholder dynamics.
