Mulberry dismisses £111m takeover bid from Mike Ashley's Frasers as 'untenable'

The London-listed manner steadfast said its committee had decided to rebuff the higher projected takeover successful favour of focusing connected boosting its concern performance

Luxury handbag shaper Mulberry has dismissed an improved £111m takeover bid from Mike Ashley's Frasers Group arsenic "untenable".

The London-listed manner statement chose to absorption connected enhancing concern show instead, successful enactment with the sentiments of its apical shareholder, Challice – a radical owned by Singaporean powerfulness mates Christina Ong and Ong Beng Seng – which has already rejected the offer, saying it has nary plans to merchantability to Frasers.

Mulberry said: "After cautious information with its advisers... the committee is unanimously of the presumption that the imaginable connection is untenable and that the institution should absorption its attraction connected driving the commercialized show of the business."

Frasers, the radical down Sports Direct and holder of a 37% involvement successful Mulberry, initially lodged an enhanced £111m connection connected October 11, consenting to wage 150p per stock for the remaining shares they bash not person to summation afloat control. This comes aft a erstwhile 130p per stock connection that enactment Mulberry's worth astatine £83m was rejected earlier successful the month.

Frasers person tightened their grip connected the high-end marketplace recently, highlighted by their accrued concern successful Hugo Boss. Nevertheless, their latest acquisition efforts coincide with a driblet successful Mulberry's banal worth precipitated by a planetary contraction successful luxury spending, arsenic inflationary pressures statesman to interaction affluent consumers.

Mulberry's shares person taken a hit, plunging implicit 30% successful the past twelvemonth and tumbling much than 22% since the dawn of 2024. The luxury marque saw its banal dip by 4% during Tuesday morning's trading session.

Frasers Group is present connected the clock, with a deadline of 5pm connected Monday October 28 to either steadfast up their bid oregon backmost out, arsenic per the regulations of the City Takeover Panel. In an effort to creaseless things implicit aft spurning Frasers' archetypal advance, Mulberry has acknowledged the backing from the Sports Direct owner, peculiarly noting its publication to the company's caller superior raising efforts.

Mulberry expressed gratitude, stating: "The committee acknowledges that Frasers, done its information successful the company’s caller fundraising, has shown itself to beryllium supportive of maintaining the worth of the Mulberry brand."

They added, "The committee appreciates this and looks guardant to further interactions with Frasers successful the future."