Frasers Group increases Mulberry stake days after takeover bid rejected

Georgia Wright
Frasers Group increases Mulberry stake following takeover bid rejection
FashionLuxury goods
Frasers Group has acquired more shares in Mulberry just days after the Mike Ashley-controlled group had its takeover bid rejected by the firm.

The luxury fashion retailer said Frasers subscribed for 4.0 million shares at the 100p per share fundraising price, through clawback provisions available to major shareholders.

Before the fundraising, the Sports Direct owner held 22.1 million shares in Mulberry, representing just under a 37% stake. This latest deal increases the group’s holding to over 37%.

Mulberry rejected the £83m takeover offer from the retail giant, following support from its majority shareholder Challice.

Frasers had proposed a cash offer of 130p per share for the fashion retailer, which values it at £83m – a 30% premium on its recent share price.

However, after consulting with financial advisers and its majority shareholder Challice, the Mulberry board concluded that the offer “does not recognise the company’s substantial future potential value”.

Mulberry also confirmed it has no plans to withdraw its £10m fundraise. The move had angered Frasers, but Mulberry said this week it would work with the FTSE 100-listed company on getting involved in the share subscription.

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