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Highlights
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Frasers Group PLC has increased its stake in Mulberry Group PLC after a takeover bid was rejected, now owning approximately 37% of the high-end handbag maker.
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The company subscribed to 3.96 million shares at 100p each, amidst concerns over a dilutive £10 million subscription offer announced by Mulberry.
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Frasers expressed frustration over Mulberry's lack of engagement during the subscription process, labeling the situation as untenable for minority shareholders.
Frasers Group PLC {LSE:FRAS}, the parent company of Sports Direct, has augmented its stake in luxury handbag manufacturer Mulberry Group PLC (AIM: MUL) after having its takeover bid rejected earlier this week. With the acquisition of an additional 3.96 million shares at a price of 100p each, Frasers now holds approximately 37% of Mulberry.
This latest share purchase comes in the context of a recent £10 million dilutive subscription and retail offer announced by Mulberry, which has drawn criticism from Frasers. Despite the increase in shareholding, the dilution from the recent subscription means that Frasers' overall ownership percentage will remain roughly the same.
Frasers Group expressed surprise and frustration regarding the £10 million subscription proposed by Mulberry's largest shareholder, Challice. The company highlighted the “total lack of engagement” from Mulberry throughout the process, describing the situation as “an untenable position for Frasers and the other minority holders of Mulberry shares.”
This development reflects the complexities of corporate relationships and shareholder dynamics, particularly in situations involving significant financial decisions and changes in ownership structures. As Frasers navigates these challenges, its increased stake in Mulberry signals a continued interest in the luxury market, despite the obstacles faced in pursuing a complete takeover.
