Mulberry rejects Frasers Group’s latest takeover offer

Mulberry has rejected Frasers Group’s increased takeover bid of £111 million as it positions itself for future growth.

The luxury brand said it has considered the position of majority shareholder Challice, which previously confirmed it had “no interest in either selling its Mulberry shares to Frasers or providing the group with any irrevocable or other undertaking with regards to the possible offer”.

In a statement, Mulberry said: “After careful consideration with its advisers, the board is unanimously of the view that the possible offer is untenable and that the company should focus its attention on driving the commercial performance of the business.

“We believe the combination of a new CEO, our new debt facility and the capital raising announced today will put the group on a firm footing to ensure we are well set up for future growth.”

The update comes after Frasers Group made a revised cash offer of 150p per share for Mulberry as the owner of Flannels and Sports Direct continued to target the luxury handbag brand despite Challice’s rejection of its previous bid.

At the time, Mulberry said it is “an inopportune time for Mulberry to be sold and particularly regrets the distraction that the possible offer is bringing to the company”.

However, Mulberry has now acknowledged that Frasers, through its participation in the brand’s recent fundraising, has shown itself to be supportive of maintaining the value of the Mulberry brand.

As a result, the company said it “appreciates this and looks forward to further interactions with Frasers in the future”.