LONDON - The board of directors at luxury fashion company Mulberry has unanimously deemed a takeover proposal from Frasers Group plc as untenable, following a review of the unsolicited revised cash offer made on October 11, 2024. Frasers Group had proposed to acquire all issued and to be issued shares of Mulberry not already in its possession for 150 pence per share.
In light of a decisive statement from Challice Limited, Mulberry's majority shareholder with 56.4% ownership, the board's stance is clear. Challice expressed on October 13, 2024, that it would not support the offer nor sell its shares to Frasers, effectively challenging the potential acquisition.
The board has advised that the company will instead concentrate on improving its commercial performance. This follows Mulberry's recent initiatives, including the appointment of a new CEO, securing a new debt facility, and a capital raising effort announced on September 27, 2024, which the board believes will solidify the foundation for future growth.
Despite the rejection of the offer, the board acknowledged Frasers' participation in Mulberry's fundraising and expressed appreciation for the support shown towards maintaining the value of the Mulberry brand, indicating an openness to future interactions with Frasers.
Frasers has until 5:00 p.m. London time on October 28, 2024, to either confirm its intention to make a formal offer in accordance with the Takeover Code or to declare that it will not pursue the acquisition, as per the regulations set by the Takeover Panel. Without the panel's consent, this deadline cannot be extended.
The board has highlighted that there is no certainty an offer will be made for Mulberry. This announcement from the company was released independently, without the consent of Frasers Group. The information is based on a press release statement from Mulberry's board of directors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.