Mulberry has turned down Frasers Group’s higher purchase offer of US $ 144 million in an effort to set itself up for future expansion.
Challice, the majority shareholder, had stated that it had “no desire to give Frasers its Mulberry shares or to provide the group with any kind of definitive commitment on the potential offer.” The luxury brand stated that it has taken this stance into consideration.
Mulberry issued the following statement, “The board unanimously believes that the potential offer is unacceptable and that the firm should concentrate on improving the business’s commercial performance after thorough deliberation with its advisers.
Following Challice’s rejection of its initial bid, Frasers Group, the owner of Flannels and Sports Direct, continued to seek the luxury handbag business and made a revised cash offer of 150p per share for Mulberry.
At the time, Mulberry stated that it was “an inappropriate moment for Mulberry to be sold, and expresses remorse in particular for the disruption the potential offer is causing to the business”.
Nonetheless, Mulberry has since admitted that Frasers has demonstrated its support for preserving the Mulberry brand’s value by taking part in the company’s most recent fundraising campaign. The business stated that it “appreciates this and anticipates speaking with Frasers again in the future” as well.
