Frasers increases Mulberry stake after failed takeover bid
After consulting financial advisers and Challice Mulberry rejected the bid the Mulberry as it believed it ‘does not recognise the company’s substantial future potential value’
Mike Ashley’s Frasers Group has acquired more shares in Mulberry just days after it had a takeover bid for the company rejected.
Frasers subscribed for 4.0 million shares at the 100p per share fundraising price, through clawback provisions available to major shareholders.
Before this Frasers held 22.1 million shares in Mulberry, representing just under a 37% stake and this latest deal increases the group’s holding to over 37%.
Last week, Mulberry rejected the £83m takeover offer from the retail giant, following support from its majority shareholder Challice.
Frasers proposed a cash offer of 130p per share which would have been a 30% premium on its recent share price.
After consulting financial advisers and Challice, Mulberry rejected the bid as it believed it “does not recognise the company’s substantial future potential value”.
Alongside this, Mulberry also confirmed it has no plans to withdraw its £10m fundraise.
Mulberry said this week it would work with the FTSE 100-listed company on getting involved in the share subscription.
