Mulberry rejects Frasers’ revised takeover bid as “unwanted distraction”
Mulberry’s biggest shareholder has rejected a revised takeover bid by Frasers Group, calling the move a distraction at a critical time for the struggling luxury handbag brand.
Challice, which owns 56.1% of Mulberry and is controlled by Singaporean billionaires Ong Beng Seng and Christina Ong, has made it clear that it has no intention of selling to the Frasers. The group, led by Mike Ashley, increased its offer to 150p per share after its original offer of 130p was rejected. The Frasers already own 36.8% of Mulberry.
Challice’s strong stance shows that without support, the Frasers will struggle to gain control of more than 50% of the company. The Ongs hope their refusal will deter the Frasers from further pursuit, calling the bid “impossible” and a distraction for the company’s management as they work on a turnaround plan.
The Bath-based brand, famous for its Bayswater handbags, recently posted a £34 million pre-tax loss and saw sales decline, reflecting challenges in the global luxury market. However, Mulberry is confident of its recovery, pointing to the appointment of a new CEO Andrea Baldo and a £10.75 million share to stabilize the business.
Frasers, however, insisted it could return the brand to profitability, aiming to avoid what they called “another Debenhams scenario.” The Frasers face a deadline of 5pm on October 28 to make a formal offer or leave.
