Frasers Group announces its divestment from N Brown Group, aligning with the Alliance family’s acquisition efforts.
- The group will sell its 20.3% stake in N Brown, expressing intentions for a strategic relationship post-acquisition.
- Joshua Alliance’s offer values N Brown at 40 pence per share, backed by acquisition vehicle Falcon 24 Topco.
- Frasers resumes negotiations with Mulberry, proposing a cash offer of 150 pence per share despite previous rejections.
- Challice, Mulberry’s key stakeholder, remains firm against the sale, impacting Frasers’ acquisition strategy.
The Frasers Group has officially confirmed it is stepping back from its investment in N Brown Group. This decision is made to support the Alliance family’s acquisition ambitions, as the group sells its 20.3% stake. Frasers has expressed an interest in maintaining a strategic relationship with Joshua Alliance and the N Brown management team post-acquisition, wishing them success in their future endeavours.
Earlier in the week, Joshua Alliance, serving as a non-executive director at N Brown, introduced an offer valuing the company at 40 pence per share. This proposition was made via Falcon 24 Topco, signalling a significant move in the acquisition landscape.
In a related move, Frasers Group is persisting in its pursuit of Mulberry, the luxury handbag retailer, with a revised cash offer of 150 pence per share. Despite Mulberry’s major shareholder, Challice, rejecting previous bids, Frasers remains undeterred in its efforts to acquire the brand.
Challice, which holds a substantial 56% stake in Mulberry, has reiterated its lack of interest in selling shares to Frasers or committing to any potential offer. By firmly stating this position, Challice aims to dissuade Frasers from pursuing the acquisition further.
Frasers has acknowledged Challice’s statement and plans to engage directly with the shareholder in a continued effort to negotiate terms that might align interests.
The strategic maneuvers by Frasers Group highlight its determination to reshape its investment portfolio amidst challenging negotiations.
