Investing.com -- Luxury fashion brand Mulberry Group plc (LON:MUL) has dismissed a revised takeover proposal from Frasers Group plc (LON:FRAS), calling it "untenable" and confirming it will instead focus on its business operations and future growth plans.
The company in a statement on Tuesday addressed Frasers’ unsolicited offer of 150 pence per share for the stock it does not already own.
Frasers, led by retail magnate Mike Ashley, announced the revised cash offer on October 11, 2024, as part of its ongoing efforts to increase control over Mulberry.
Mulberry said that the proposal was evaluated thoroughly alongside input from its advisers. However, it stated that Challice Limited—the company’s majority shareholder with a 56.4% stake—remains firmly opposed to the bid.
On October 13, Challice publicly confirmed it would not sell its shares to Frasers or endorse the offer, effectively blocking the path for a full acquisition.
Mulberry said that given Challice’s opposition and its own strategic priorities, it sees no reason to pursue Frasers' offer. “The Company should focus its attention on driving the commercial performance of the business,” Mulberry said in a statement.
"We believe that the combination of the appointment of a new CEO, our new debt facility and the capital raising announced today will put the Group on a firm footing to ensure we are well set up for future growth," Mulberry said.
Frasers responded by announcing on October 18 that it had reached out to Challice directly in an effort to explore possibilities. Mulberry’s board declined to comment on any direct engagement between the two parties.
Frasers now faces a deadline of October 28, 2024, to either make a formal takeover offer or withdraw under the UK’s takeover rules.
Any extension of this timeline would require approval from the Takeover Panel. Mulberry warned that there is no certainty that Frasers will move forward with a formal offer.