Mulberry rejects Frasers Group’s proposed takeover bid
Luxury brand Mulberry has rejected a potential takeover bid by Mike Ashley’s Frasers Group.
The news follows Frasers Groups’ tabling of a possible offer which valued the business at £83 million. The company is Mulberry’s second largest shareholder with a stake of 37%.
In a statement, Frasers Group said yesterday: “We have long been supportive of the brand and commercial opportunities available to the company.
“With our leading retail expertise and presence, and best in class distribution capability, we believe Frasers to be the best steward for returning Mulberry to profitability.”
Mulberry’s sales have been hit by a slowdown in the luxury market and it is currently planning to raise over £10 million in cash.
Today it said it had considered the possible offer and consulted with Challice, its 56.1%. majority shareholder, and concluded that the it did not recognise Mulberry’s “substantial future potential value”.
It added that Challice is supportive of the company’s turnaround strategy which is being led by Mulberry’s recently appointed chief executive, Andrea Baldo.
Under UK takeover rules, Frasers Group now has a deadline of 28 October to make a firm offer for Mulberry or walk away.
