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Highlights
Mulberry's board unanimously rejected Frasers Group's revised cash offer to acquire the remaining share capital at 150 pence per share, deeming it untenable.
Challice Limited, Mulberry’s largest shareholder with 56.4% ownership, refused to sell its shares or support Frasers’ offer, weakening the bid's chances of success.
Mulberry's board reaffirmed its focus on driving business growth through strategic initiatives, including appointing a new CEO, securing new financing, and raising capital for expansion.
Mulberry Group (LSE:MUL) has announced that its board of directors has unanimously rejected an unsolicited revised cash offer from Frasers Group plc to acquire the remaining share capital not already owned by Frasers. The offer, valued at 150 pence per share, was deemed untenable by Mulberry’s board, which has reaffirmed its commitment to focusing on driving business growth.
Key Points:
- Frasers Group’s Offer: On 11 October 2024, Frasers Group proposed a revised possible cash offer to purchase the remaining shares of Mulberry that it does not already own. Frasers is currently a significant minority shareholder in Mulberry.
- Major Shareholder Challice Limited's Stance: Mulberry’s largest shareholder, Challice Limited, which holds 56.4% of the company, made its position clear on 13 October 2024 by stating it would not sell its shares to Frasers nor support the offer. Challice’s resistance to the bid further weakened the possibility of the offer succeeding.
- Board's Response: After consulting with advisers and considering Challice’s position, Mulberry’s board concluded that the offer was not in the best interest of the company and its shareholders. As a result, the board has opted to focus its attention on improving the company’s commercial performance.
Focus on Business Growth
The board highlighted Mulberry’s strategic direction during its 27 September 2024 financial results announcement, emphasizing the steps it is taking to position the company for future growth. These steps include the appointment of a new CEO, securing a new debt facility, and raising capital to support the company’s expansion plans.
The board remains confident that these initiatives will help put Mulberry on a stronger footing and ensure it is well-equipped for sustained growth, despite the unsolicited bid from Frasers.
Mulberry’s decision to reject the offer and instead concentrate on its growth strategy signals the company's long-term focus, backed by its majority shareholder, Challice Limited, and a refreshed leadership team.
