Following the rejection of Frasers Group’s bid for Mulberry Group, it has submitted a revised offer for the part of the business it does not currently own.

Frasers is a significant minority shareholder, holding approximately 37% of the fashion brand’s issued share capital.

Frasers’ initial offer (in which Mulberry shareholders would have been entitled to receive 130 pence in cash for each Mulberry share) followed Mulberry announces a proposed subscription for 10,000,000 new ordinary shares in the capital of the company by Challice Ltd (the majority shareholder of the company), at a price of £1 per share, and a separate offer to existing shareholders of the company of a maximum of 750,000 new ordinary shares at the subscription price.

Following the rejection of Frasers’ proposal, the company said Frasers was unclear how…Mulberry’s Board of Directors could have concluded that the subscription price was appropriate before, a few days later, rejecting (its) initial proposal (at a price 30% higher).

Frasers further shared “ssignificant reserves” that the £10 million raised under the subscription will be sufficient to support the business in the short and medium term.

Frasers also objected to Mulberry’s statement that its offer did not recognize the “substantial future potential value of Mulberry”, noting: “Frasers is clear that there are currently no commercial plans, of recovery or otherwise. »

He adds: “Despite… Mulberry’s disastrous results, its need for emergency funding and a difficult market environment, Frasers firmly believes it can provide the appropriate insulation and investment to support a much-loved British brand . As part of the Frasers portfolio, the Mulberry brand would benefit from the platform necessary to ensure its long-term survival and success.

As part of the new offer from Frasers, Mulberry shareholders would be entitled to receive 150 pence in cash for each Mulberry share. This implies a valuation of approximately £111 million for the entire issued and to be issued share capital of Mulberry, or approximately £72 million for the entire issued and to be issued share capital of Mulberry that Frasers does not own. not.

It marks a premium of 50 per cent on the subscription price of £1.00 per share.

Challice Limited, the company’s 56.4 percent majority shareholder, was however quick to publicly state that it “has no interest in selling its Mulberry shares to Frasers or providing Frasers with an irrevocable undertaking or other.”