Challice, the largest shareholder of Mulberry, has turned down Frasers Group’s enhanced offer of £111 million for the fashion retailer, stating it has “no interest” in divesting its stake.
The key shareholder of the luxury handbag brand, holding a 56% interest, stated: “Challice has no intention of selling its Mulberry shares to Frasers or granting Frasers any irrevocable or other commitment concerning the potential offer.”
Challice emphasized that Frasers would not be able to gain control of Mulberry without its backing, expressing hope that clarifying its stance will encourage Frasers to declare it will not pursue an offer for the company.
Frasers, which already holds 37% of Mulberry, increased its bid for the retailer to 150p per share last Friday, following an earlier rejected proposal of £83 million, equivalent to 130p per share, earlier in the month.
Frasers Group also participated in last week’s funding round for Mulberry, acquiring £3.9 million in new shares. The fashion retailer’s board noted last month that the recent hiring of CEO Andrea Baldo, along with the £10.75 million capital raise, “provides the company with a robust foundation to implement a turnaround strategy.”
Nonetheless, Challice expressed that it “believes it is a poor time for Mulberry to be sold and particularly regrets the distraction the potential offer is causing for the company and its management team at this moment.”
Challice further stated that it remains “very supportive of the company and its current management team” and holds strong belief in the long-term value of the fashion brand.
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