Frasers Group PLC (LSE:FRAS) has increased its stake in high-end handbag maker Mulberry Group (AIM:MUL) after the Sports Direct owner had its takeover bid rejected earlier this week.
Frasers, which had already owned 37% of the business, bought another 3.96 million shares through a subscription offer at 100p per share.
Following today’s share purchase, Frasers will own roughly the same percentage of the business given the recent £10 million dilutive subscription and retail offer recently announced by Mulberry.
This dilutive round was a source of frustration for Frasers, prompting the FTSE 100-listed company to table a comprehensive takeover of Mulberry.
Frasers expressed surprise and frustration about the proposed £10 million subscription by Mulberry’s largest shareholder Challice, citing Mulberry’s “total lack of engagement” throughout the process, calling it “an untenable position for Frasers and the other minority holders of Mulberry shares”.