Mulberry Rejects Frasers Group’s £83 Million Bid for Acquisition

Mulberry has rejected a takeover bid from Frasers Group, which was offered at £83 million, in response to the proposal from the company led by Mike Ashley for the struggling luxury fashion brand.

On September 30, Frasers submitted a cash offer of 130p per share for Mulberry, which totals £83 million and indicates a 30% premium compared to the retailer’s recent share price.

Following consultations with financial advisors and the firm’s majority owner Challice, Mulberry’s board concluded that Frasers’ offer “does not acknowledge the company’s significant future potential value.”

Challice, which owns 56.1% of Mulberry, has also shown support for the ongoing recovery strategy steered by new CEO Andrea Baldo, who began his role in July.

As a result, Mulberry’s board has declined the proposal and plans to pursue efforts to raise over £10 million in cash.

The board highlighted that this fundraising initiative would provide all shareholders with a chance to participate in the company’s recovery efforts on fair terms.

Frasers, holding a 37% stake in Mulberry, expressed concerns regarding the retailer’s future after its auditors indicated “material uncertainty related to going concern” on Friday.

The group stated that it wishes to avoid a situation similar to Debenhams, where a viable business was pushed into administration.

Frasers has until October 28 to submit a formal offer or withdraw, as per UK takeover regulations.

Mulberry’s board mentioned their openness to discussions with Frasers regarding a pro-rata share in the upcoming capital raise.

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