Mike Ashley’s Frasers Group has tabled a £83m takeover of Mulberry and launched a tirade against its board after allegedly being shut out of discussions over a £10m fund raise. The retail giant, which owns a 37 per cent stake in Mulberry, offered £83m for the rest of the luxury fashion brand, valuing each share at 130p. This was a premium of approximately 11 per cent to the closing share price on 27 September.
The offer came after Mulberry announced a subscription of new ordinary shares by Challice, the majority shareholder of Mulberry, to raise approximately £10m. Mike Ashley’s Frasers Group said it was not aware of the subscription “until immediately prior to its announcement” and that the “total lack of engagement” was an “untenable position for Frasers and the other minority holders of Mulberry shares”. It launched an indicative offer around 24 hours after hearing the subscription announcement.
Frasers has until 5pm on 28 October to either to announce a firm intention to make an offer for Mulberry or announce that it does not intend to make an offer. Frasers Group’s indicative bid comes after Mulberry announced a slide in profit – reporting a pre-tax loss of £34.1m having made a pre-tax profit of £13.
2m in 2023. UK retail sales of fell to £84.7m, from £87.
7m in 2023, after consumer spending habits “were impacted by the challenging macro-economic uncertainty and inflationary pressures”. Retail revenue fell by 14 per cent globally, the brand .