Mulberry’s billionaire backer has turned down a takeover bid from Mike Ashley’s Frasers Group, opting to proceed with the company’s financing plans.
The luxury handbag maker stated that Monday’s £83 million offer “does not reflect the company’s significant future potential.” Singapore-based billionaire hotelier Ong Beng Seng and his wife Christina, who control 56% of the company, have declined to support the bid.
In a Tuesday update to shareholders, Mulberry confirmed that Mr Ong is not interested in backing the potential offer. The company will instead move forward with its previously announced plan to raise an additional £10.75 million from shareholders.
Frasers Group, which currently holds a 37% stake in Mulberry, announced on Monday its offer to acquire the company’s remaining shares. This move came in response to news that Mulberry had agreed to raise £10 million from its majority shareholder, Challice.
