The major shareholder of Mulberry has firmly rejected the increased acquisition bid of £111m by Frasers Group.
- Challice, holding 56% of Mulberry shares, reiterated its lack of interest in selling its stake.
- Frasers already owns 37% of the company and had previously increased its offer from £83m.
- Challice’s public statement suggests continued belief in Mulberry’s long-term value despite potential distractions.
- Frasers Group participated in Mulberry’s recent fundraising, but a full takeover now appears unlikely.
In a decisive move, Challice, the primary shareholder of luxury retailer Mulberry, has declined Frasers Group’s latest bid of £111 million. Challice has made it clear that it has no interest in offloading its significant 56% stake in Mulberry, nor in facilitating any offers from Frasers, who currently holds 37% of the company.
This rejection follows Frasers Group’s prior attempt to acquire Mulberry at £83 million, which was similarly rebuffed. The revised proposal of 150p a share came as Frasers sought to strengthen its position within the fashion retailer.
Challice hopes its definitive stance will dissuade Frasers from pursuing further acquisition attempts, as it has emphatically stated that Frasers cannot achieve a takeover without its endorsement. Challice believes this is an inopportune time for such transactions, citing a potential distraction to the company’s management during an essential turnaround phase.
The announcement comes on the heels of Mulberry announcing the appointment of CEO Andrea Baldo and completing a £10.75 million cash raise. This move is seen as a strategy to bolster Mulberry’s market position and facilitate a business turnaround.
Despite Frasers Group’s participation in the recent £3.9 million fundraising by purchasing additional Mulberry shares, Challice remains firm in its resolve. Challice continues to support Mulberry’s management team and sees long-term value in maintaining its holdings.
Frasers Group is unlikely to make further offers for Mulberry following Challice’s clear rejection.
