Frasers Group has updated on significant developments involving N Brown Group and Mulberry, showcasing strategic investment decisions.
- The group has committed to supporting an acquisition of N Brown Group by Falcon 24 Topco, amidst changing ownership dynamics.
- Frasers Group’s stake in N Brown involves a major share sale, marking an important shift in shareholder structure.
- Efforts to take over Mulberry continue, with Frasers Group increasing its offer after initial rejection, though facing opposition from major stakeholders.
- Frasers Group remains in discussions, seeking feedback and engagement from stakeholders to finalise its proposals.
Frasers Group has announced its agreement to back the acquisition of N Brown Group by Falcon 24 Topco. The acquisition is spearheaded by Lord Joshua Alliance, who is set to take the company private in a transaction valued at £191 million. Shareholders, including Frasers Group with a 20.3% stake, will receive 40 pence per share in cash as part of the acquisition plan. Alternatively, they have the option to receive one unlisted ordinary share per N Brown share in Bidco.
Frasers Group’s decision reflects a strategic manoeuvre in the retail sector, potentially realigning stakeholder interests and financial foundations. This move comes after careful consideration of the market dynamics and shareholder expectations.
Meanwhile, Frasers Group’s effort to acquire luxury brand Mulberry is ongoing. On 11 October, the group increased its offer to £111 million, equating to 150 pence per share, after a previous £83 million bid was declined. Despite being the second-largest shareholder with a 37% stake, Frasers is yet to receive consensus from Mulberry’s stakeholders regarding its revised proposal.
The primary resistance comes from Challice, holding a 56.4% stake in Mulberry. Challice has expressed concerns about the timing of the sale, deeming it ‘inopportune’ and a distraction to Mulberry’s management. This stance represents a significant hurdle for Frasers as it seeks to negotiate the terms of acquisition effectively.
Frasers Group continues to engage with Challice and other stakeholders, underlining the need for thorough evaluation and dialogue. The group is awaiting a formal response from Mulberry’s board on its increased offer, stressing the importance of strategic growth and consolidation in the fashion industry.
Frasers Group’s strategic decisions with N Brown and Mulberry reflect its continued efforts to strengthen its position in the retail sector.
