Mulberry has rejected a potential cash offer from Frasers Group to acquire the company’s shares at 130 pence each. After consulting with advisors and majority shareholder Challice Limited, the board of directors concluded that the offer does not reflect Mulberry’s future value. Challice, which owns 56.1% of Mulberry, supports the company’s current strategy and does not back Fraser’s proposed offer.
The board remains committed to its previously announced Subscription and Retail Offer, asserting that this is the best way to raise additional equity funding for all shareholders. Frasers, holding approximately 36.8% of Mulberry’s shares, must announce a firm intention to proceed with an offer or withdraw by 28 October. Mulberry is now in an “offer period,” and shareholders should know the related disclosure requirements.
There is no certainty that an offer will be made or its potential terms. The board looks forward to discussing pro-rata participation in the Subscription with Frasers.
Mulberry rejects Frasers’ proposal
Mulberry’s rejection of Frasers’ offer comes amid a challenging period for the luxury brand. The company recently reported delayed results, an 18% drop in sales over the past six months, and the need for a £10 million emergency capital raise. The situation has been further complicated by the charging of Ong Beng Seng, one-half of the Singaporean power couple who controls Mulberry, in connection with a political corruption scandal in Singapore.
Despite these challenges, Mulberry’s majority shareholder, Challice, remains supportive of a turnaround led by new CEO Andrea Baldo, who joined the company in the summer. Baldo is currently drafting a turnaround plan focused on the UK market and potentially shifting away from luxury aspirations. Now run by Mike, Ashley’s son-in-law, Michael Murray, Frasers has expressed disappointment with Mulberry’s performance and governance.
The company has requested documents relating to commercial agreements between Mulberry and the Ong family and details of Mulberry’s turnaround plan. As the situation unfolds, the fashion world will watch closely to see how Mulberry will navigate its current challenges and what role Frasers will play in the company’s future.
