Mulberry's controlling shareholder has turned down a £111 million acquisition bid from Mike Ashley's Frasers Group, asserting that it has "no interest" in selling its stake in the renowned British luxury handbag brand. Challice, the investment group owned by Singaporean business figures Christina Ong and her husband Ong Beng Seng, controls 56% of Mulberry, giving it the authority to prevent any takeover. Challice has urged Frasers to drop its bid, stating that the timing is not right for the struggling company.
Frasers Group, already holding 37% of Mulberry, raised its offer to 150p per share following a prior £83 million bid (130p per share) that was rejected earlier in the month. This renewed offer comes after Mulberry disclosed the need to raise additional capital following a £34 million pre-tax loss in the year to March, caused by declining sales.
The retail conglomerate, which owns Sports Direct, House of Fraser, and Flannels, made its bid to prevent Mulberry from suffering a similar fate to Debenhams, in which Frasers lost £150 million after the department store chain went into administration. Frasers stated that it wants to ensure that Mulberry, which it considers a viable company, avoids going under.
Despite its financial troubles, Mulberry's board remains optimistic about its recovery. The board pointed to the appointment of Andrea Baldo as the new chief executive, along with a £10.75 million emergency share issue, as key actions that will help stabilize the business and pave the way for a turnaround.
Challice, while acknowledging Frasers' participation in the recent fundraising round—where the retailer purchased £3.9 million worth of new shares—made it clear that it has no intention of selling its stake. Challice also stated that it would not provide any binding commitments regarding Frasers' proposed offer.
By reiterating that Frasers cannot proceed with a full takeover without its backing, Challice expressed hope that the bid would be withdrawn. Furthermore, Challice voiced strong support for Mulberry's management team and reaffirmed its belief in the long-term potential of the brand, signaling its commitment to guiding the company through its current difficulties.