Frasers Group Withdraws Bid for Mulberry Takeover

Frasers Group has declared that it will no longer seek to acquire Mulberry, citing governance concerns following the luxury handbag maker’s board’s outright rejection of its latest proposal.

The owner of Sports Direct, who holds a 37% stake in the high-end brand, had submitted a revised cash offer earlier this month, suggesting 150p per share for the remaining shares they do not already possess, which would put the overall valuation of the company at £111 million.

However, Mulberry’s board deemed the offer “untenable” after the majority stakeholder Challice, which owns 56%, communicated “no interest in selling its Mulberry shares to Frasers or providing any irrevocable or other commitment regarding the proposed offer.”

In a statement, Frasers expressed disappointment with the outcome while reiterating its commitment to the esteemed British brand.

The owner of Sports Direct emphasized growing concerns over Mulberry’s governance, the lack of a commercial strategy in light of increasing market difficulties, and particularly, the financial struggles currently confronting Mulberry.

Additionally, the group stated a preference to avoid a situation where the board interacts solely with Challice on critical issues, such as the emergency subscription of £10 million that was disclosed last month.

Despite withdrawing its takeover attempt, the group is pushing for the appointment of a Frasers representative to Mulberry’s board.

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