Do Frasers really want to buy out Mulberry? In February 2020, they were holding 12.5% of the company’s shares; then, at the beginning of November, the group, led by Mike Ashley, climbed to 29.7%. They now hold, in their possession, 36.82% of the capital assets. Things are getting interesting at this point. Frasers are supposed to reveal their intentions before the Takeover Panel by December 17th (except for postponements). Do they want to become the majority shareholder of the British leather goods manufacturer or not? At present, Mulberry is controlled by Challice Limited, a company that belongs to the Ong Beng Seng family and Christina Ong, who currently hold 56.14% of the business.
Buy out Mulberry
Any time an investor gets to hold over 30% of the company’s capital assets, he must make a mandatory takeover bid, cash. As regards this specific case, Frasers Group will not have to abide by such obligation because Mulberry has just one single majority shareholder. The Takeover Panel has set a deadline, December 17th. Yet Frasers themselves believe they might postpone such due date. As made public by WWD, the company, led by Mike Ashley, is reportedly considering the bid. Should they eventually decide to submit it to Mulberry shareholders, it would be for sure a cash one.
Not right now, perhaps
Some insider sources have remarked that, for the time being, Mulberry’s stock quotation is not high. Therefore, the Ong family might decide to stand by and stick to their guns. Besides Frasers, Ashley is also the owner of British resellers Sports Direct, Lilywhites and chain of department stores House of Fraser. On top of them, he also runs fashion reseller Flannels, apparel brand Jack Wills and lingerie brand Agent Provocateur.
Read also:
- Frasers take up to 29.7% of Mulberry: is it the first takeover step?
- Mulberry is hit by social distancing and the lack of tourism
