Frasers backs N Brown takeover deal amid Mulberry plans
Last week, the company said that it had agreed plans to sell its stake in N Brown to Falcon 24 Topco Limited, a company owned and controlled by Joshua Alliance, in a £191m deal
Frasers Group has confirmed that it backs the takeover deal of N Brown by the Alliance family and has agreed to the sale of its 20% stake in the company for £38m, as it continues its efforts to strike a deal with luxury brand Mulberry.
Frasers Group, owner of Sports Direct and House of Fraser, will sell each share at 40p each.
In an official announcement, the company said: “Frasers wishes Joshua Alliance and the N Brown management team every success for the future, and although Frasers will have divested of its shareholding in full, Frasers looks forward to a strategic relationship with Joshua Alliance and the N Brown team post-acquisition.”
At the same time, Frasers also updated its shareholders on the company’s plans to buy luxury handbag retailer Mulberry.
The retailer had made an £83m offer for the luxury brand on 30 September which Mulberry rejected on the basis that the initial offer did not recognise the “substantial future potential value of Mulberry”.
Frasers has now put forward a revised second bid of £111m, or 150p per Mulberry share, on 11 October.
However, following Frasers’ offer majority shareholder Challice announced that it “has no interest in either selling its Mulberry Shares to Frasers or providing Frasers with any irrevocable or other undertaking”.
In light of this, Frasers commented that it has “sought to engage with Challice directly”.
