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Mulberry Rejects Frasers Group’s Increased Bid Amidst Reluctance from Major Shareholder

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Mulberry Rejects Frasers Group’s Increased Bid Amidst Reluctance from Major Shareholder

Challice, the principal stakeholder in Mulberry, has rejected Frasers Group’s improved bid of £111 million for the fashion label, asserting that it has “no interest” in selling its shares.

As the major stakeholder with a 56% share, Challice articulated, “Challice has no intention of selling its Mulberry shares to Frasers or granting Frasers any irrevocable or other commitment concerning the potential offer.”

Challice highlighted that Frasers cannot acquire control of Mulberry without its support and expressed the hope that by clarifying its position, Frasers will decide against pursuing a bid for the brand.

Frasers, which already owns 37% of Mulberry, raised its offer for the retailer to 150p per share last Friday, following an earlier bid of £83 million, or 130p per share, which had been rejected earlier in the month.

Additionally, Frasers Group took part in a recent funding round for Mulberry, purchasing £3.9 million in new shares. The board of the fashion retailer remarked last month that the appointment of CEO Andrea Baldo, combined with the £10.75 million capital raise, “provides the company with a robust foundation to implement a turnaround strategy.”

However, Challice conveyed its belief that “it is a poor time for Mulberry to be sold” and expressed disappointment over the distraction the potential offer is causing for the company and its management team at this time.

Challice reiterated its strong support for the company and its current leadership, emphasizing its confidence in the brand’s long-term potential.

Image Source: Roman Zaiets / Shutterstock

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