Frasers Group increases shares in Mulberry following offer rejection

Business

Credits: Mulberry, Battersea Power Station

Just a few days after the British luxury leather goods brand Mulberry rejected a takeover attempt by the British retail group Frasers Group Plc, Frasers has now increased its stake in the traditional British brand.

As revealed in a statement, Frasers subscribed to 3.96 million shares at a price of 100 pence per share.

Mulberry, which is listed on AIM (a sub-market of the London Stock Exchange), announced last month that it would issue new ordinary shares to prop up the loss-making company through a 10.75 million pound capital increase.

Frasers, which previously owned 36.8 percent of Mulberry shares, disagreed with the move and made a takeover offer, which Mulberry ultimately rejected. The additional shares will increase Fraser's stake in Mulberry slightly to 36.9 to 37.3 percent.

Under the Takeover Code, Frasers has until October 28 to either make a formal offer or withdraw its takeover plans.

Frasers Group, which includes retail chains such as Sports Direct, House of Frasers and Flannels, has been pursuing an aggressive investment and acquisition strategy for years.

In addition to Mulberry, the group also has shares in companies such as Hugo Boss, Asos and Boohoo. It has also taken over a large number of financially troubled companies in the fashion and retail sectors.

This article originally appeared on FashionUnited.DE. It was translated to English using an AI tool called ChatGPT..

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