Mulberry’s largest shareholder Challice has rejected Frasers Group’s increased bid of £111m for the fashion retailer as said it had “no interest” in selling its stake.
The luxury handbag retailer’s major shareholder, which owns a 56% stake, said: “Challice has no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking with regards the possible offer.”
It pointed out that Frasers would be unable to take over Mulberry without its support, and said: “Challice hopes that by making its position clear, Frasers will be encouraged to announce that it does not intend to make an offer for Mulberry.”
Frasers, which already owns 37% of Mulberry, raised its offer for the retailer to 150p a share on Friday after an earlier £83m bid – worth 130p a share – was rejected earlier this month.
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The Sports Direct owner also opted to participate last week’s fundraising round by Mulberry, buying £3.9m new Mulberry shares. Last month, the fashion retailer’s board said the recent appointment of CEO Andrea Baldo alongside the £10.75m cash raise “provides the company with a solid platform to execute a turnaround”.
However, Challice said it “believes that it is an inopportune time for Mulberry to be sold and particularly regrets the distraction that the possible offer is bringing to the company and its management team at this time”.
It added that it was “very supportive of the company and its current management team” and believed in the long-term value of the fashion retailer.
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