FX.co ★ Mulberry Rejects Frasers' Takeover Offer To Buy Remaining Stake For 130 P/share

Mulberry Group plc (MUL.L) has announced that it has turned down a takeover proposal from Frasers Group Plc (FRAS.L), a British company specializing in retail, sports, and intellectual property. The offer was for the remaining shares not currently owned by Frasers for 130 pence per share in cash.

Frasers Group holds a significant minority share, comprising approximately 37 percent of Mulberry's issued share capital, specifically around 36.8 percent of its issued ordinary shares.

After evaluating the offer, Mulberry, in conjunction with its majority shareholder Challice Limited, which holds a 56.1 percent stake, concluded that they have a robust foundation for a turnaround. This confidence is bolstered by the recent appointment of Andrea Baldo as CEO and the recently announced Subscription and Retail Offer aimed at raising capital.

Moreover, Mulberry contends that Frasers' offer does not adequately reflect the company's substantial future potential. Challice Limited supports Mulberry’s strategy and is not in favor of the latest takeover bid.

"While acknowledging that Frasers is a dedicated and significant investor in Mulberry and has publicly expressed willingness to underwrite the Subscription, the Board anticipates further engagement with Frasers regarding their pro rata participation in the Subscription," the company stated.

Frasers is required to either publicly declare a firm intention to make an offer for Mulberry or announce that it does not intend to make an offer by no later than 5.00 p.m. (London time) on October 28.

As a result of Frasers' announcement, Mulberry is now considered to be in an "offer period."

The company emphasized that there is no certainty an offer will materialize or, if it does, what the terms might be.