Onward
Mulberry Rejects Frasers Group’s Revised £111 Million Takeover Offer
Mulberry has rejected Frasers Group’s improved takeover bid of £111 million as tensions rise between the luxury handbag retailer’s leading shareholder and the owner of Flannels.
The retailer noted that it had considered the viewpoint of its major investor, Challice, which indicated last week its “no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking regarding the potential offer.”
In a statement issued on Tuesday, Mulberry declared: “After thorough consideration with its advisers and in light of the above, the board is unanimously of the opinion that the possible offer is untenable and that the company should concentrate its efforts on enhancing the commercial performance of the business.”
This decision follows Frasers’ submission of a revised cash offer this month, which amounted to 150p per share for stakes they do not already control, raising the total bid from its original offer of £83 million to £111 million.
Mulberry reiterated a statement made at the end of September: “We believe that the combination of the appointment of a new CEO, our new debt facility, and the capital raising announced today will provide the group with a strong foundation for ensuring we are well-prepared for future growth.”
Frasers has until 28 October to either make a firm offer for the company or declare its intention not to proceed.
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