Mulberry has decisively turned down Frasers Group’s £111m takeover offer, citing strategic focus and shareholder stance.
- The luxury retailer prioritises its commercial success over the contested offer.
- Challice, the major shareholder, firmly opposes selling its stake to Frasers Group.
- Mulberry awaits a potential solid offer from Frasers before 28 October.
- Innovative strategies are in place at Mulberry for future growth and sustainability.
Mulberry has firmly rejected the Frasers Group’s increased takeover bid valued at £111 million. This decision underscores the company’s strategic focus on enhancing its commercial performance rather than engaging in the acquisition process.
The refusal to sell is backed by Mulberry’s major shareholder, Challice, which has expressed unequivocal disinterest in selling its shares to Frasers Group. Challice has explicitly stated its intention not to provide any irrevocable undertakings regarding the proposed offer.
This development follows Frasers Group’s revised cash offer of 150 pence per share for those not already owned by them, an increase from their initial bid of £83 million. Mulberry’s board, after thorough deliberation with its advisers, has collectively deemed the offer untenable.
Mulberry continues to stress the significance of its strategic plans, particularly highlighting the recent appointment of a new CEO and the acquisition of a new debt facility. These moves are part of a broader effort to position the company for robust future growth.
Frasers Group is required to submit a definitive offer or declare its non-intention by 28 October, placing additional pressure on the Group. The emphasis remains on the evolving dynamics between the major stakeholders involved.
Mulberry’s decisive stance and strategic planning underscore its commitment to independent growth amidst acquisition interests.
