Frasers Group has officially withdrawn its bid to take over Mulberry.
- The decision comes after Mulberry’s board rejected Frasers’ latest offer.
- Frasers had proposed a cash bid of 150p per share for Mulberry, valuing it at £111 million.
- Mulberry’s majority shareholder, Challice, stated it had no interest in selling its shares.
- Frasers expressed concerns over Mulberry’s governance and commercial strategy.
Frasers Group, the owner of Sports Direct, has decided to cease its efforts to acquire luxury handbag retailer Mulberry. This decision comes after significant governance concerns were raised by Frasers, following the unanimous rejection of its revised offer by Mulberry’s board.
Earlier in the month, Frasers had submitted a revised cash offer, proposing a price of 150p per share for Mulberry’s remaining shares, which would have valued the company at approximately £111 million. However, this bid was found “untenable” by Mulberry’s board, particularly after Challice, Mulberry’s majority shareholder with a 56% stake, indicated no interest in the sale of its shares or in providing Frasers with any commitment concerning the potential offer.
Despite what Frasers described as a “disappointing outcome,” the group remains supportive of Mulberry as a well-recognised British brand. Their concerns, however, extend to what they see as a lack of a robust commercial plan by Mulberry amidst challenging market conditions and question marks over Mulberry’s financial stability.
Frasers further criticised the potential for Mulberry’s board to engage exclusively with Challice, citing the example of an emergency £10 million subscription discussed privately last month. Following its decision to withdraw from the takeover bid, Frasers has called for a representative to join the Mulberry board to address these governance issues.
Frasers Group’s withdrawal marks a significant point in its relationship with Mulberry, with governance issues at the forefront.
