Frasers Group has abandoned its takeover plans for Mulberry, citing governance concerns after the brand rejected its increased bid of £111 million earlier this week.
It comes after Frasers, which owns a 37% stake in the luxury brand, submitted a revised cash offer earlier this month of 150p per share for the remaining shares it does not already own.
However, Mulberry considered the offer “untenable”, sharing that it would instead focus on the company’s growth strategy, including a new CEO, debt facility and capital raising.
In a statement today, Frasers said the decision was “disappointing” but reaffirmed its “long-term support” for the brand.
The retail giant added that it has become “increasingly concerned over the governance of Mulberry, the apparent lack of a commercial plan against a backdrop of increasing market headwinds, and critically, the financial position in which Mulberry currently finds itself”.
“Frasers continues to believe that market headwinds, and a clear lack of commercial plan, place the company in a very difficult financial position. Frasers welcomes the presentation of a credible plan in the near term,” the statement continued.
Despite withdrawing its bid, the group has requested the appointment of a Frasers representative to the Mulberry board, a request “that has been made several times in recent history”.
