Frasers Group has increased its takeover bid for Mulberry to £111 million following a rejected offer last week.
- The revised offer values Mulberry shares at a 50% premium of 150p each.
- Frasers has slightly raised its stake in Mulberry after purchasing additional shares.
- The deadline for a firm offer under UK rules is set for 28 October.
- The acquisition followed a strategic investment in THG shares as part of a fundraising effort.
Frasers Group has surged forward with a revised takeover bid for luxury handbag retailer Mulberry, raising the offer to £111 million after its previous bid was turned down. This new proposal stands as a significant increase from the original £83 million offer, providing Mulberry shareholders a beneficial 50% premium at 150p per share, above the recent fundraising price.
On 1 October, the initial proposal was firmly rejected by Mulberry’s board, asserting that it failed to acknowledge the potential future value the company could achieve. However, within days of the rejection, Frasers managed to acquire roughly four million shares from Mulberry at a price of 100p each, thus, incrementally increasing its ownership stake to an approximate range of 36.9% to 37.3%.
The strategic timing is critical, as under UK takeover regulations, Frasers Group faces a deadline of 28 October to formalise its offer or abandon the pursuit entirely. This move signals Frasers’ determined approach to cement its influence within the luxury sector, leveraging timing and financial incentives to make its case more appealing to Mulberry stakeholders.
This acquisition attempt is closely followed by Frasers’ recent investment activity in THG, an online retail group. The purchase amounted to £10 million, contributing to THG’s strategic fundraising initiative, which ultimately secured £95.4 million—surpassing the initial £75 million target. This capital was primarily pooled to enable THG’s intended separation of its technology division, Ingenuity.
The investment in THG shares, led by CEO Matthew Moulding’s £10 million stake, underscores Frasers’ broader strategic intent in expanding its portfolio and influence, aligning with its interest in acquiring significant positions within the upscale retail market.
These manoeuvres underscore Frasers Group’s ambitious strategy to augment its footprint within the luxury and online retail arenas.
