Frasers Group announced the withdrawal of its bid to take over Mulberry, highlighting governance issues.
- The group’s proposal valued Mulberry at £111 million, with a 150p per share offer.
- Mulberry’s board rejected the offer, citing its untenability, backed by Challice’s disinterest in selling.
- Frasers expressed concerns over Mulberry’s governance and financial strategies amid market challenges.
- A Frasers representative’s appointment to Mulberry’s board has been proposed despite the dropped bid.
Frasers Group has confirmed it will no longer pursue its attempt to acquire Mulberry, citing governance concerns after the luxury brand’s board unanimously rejected its latest offer. The group’s proposal, submitted earlier this month, offered 150p per share for the remaining shares not already owned by Frasers, which currently holds a 37% stake. This bid valued Mulberry at £111 million.
Despite the competitive offer, Mulberry’s board found it ‘untenable’. This assessment was strongly supported by Challice, the majority shareholder, owning 56% of Mulberry. Challice expressed ‘no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking with regards to the possible offer.’
Frasers labelled the decision a ‘disappointing outcome’ yet reaffirmed its ongoing support for Mulberry as a cherished British brand. The group highlighted its increasing concerns over Mulberry’s governance, pointing at the absence of a commercial plan amid growing market headwinds. Additionally, Frasers criticised the financial position Mulberry currently finds itself in.
Concerns were also raised about Mulberry’s board’s decisions, particularly its choice to privately engage with Challice on critical issues like the recent emergency £10 million subscription. Frasers has called for the inclusion of its representative on Mulberry’s board, aiming to influence corporate governance and financial strategies despite the abandoned takeover.
Frasers remains a committed stakeholder in Mulberry, despite withdrawing its takeover proposal due to governance concerns.
