Mike Ashley’s Frasers Group PLC (LSE:FRAS) was snubbed in its attempt to secure a controlling stake in British luxury brand Mulberry Group (AIM:MUL), but it appears that there is still some fight left in the FTSE 100-listed Sports Direct owner.
Mulberry rejected Frasers’ offer to acquire the business in September at an £83 million valuation, stating that the 150p-per-share bid “does not recognise the company's substantial future potential value”.
Frasers, which already owns more than a third of Mulberry’s outstanding shares, launched the bid in retaliation to majority shareholder Challice’s agreement to enter into a £10 million dilutive equity round in Mulberry.
Ashley’s retail giant made a second bid at 150p on Monday and reignited the takeover campaign today, noting that "it is still yet to receive formal feedback from the board of Mulberry on the revised proposal".
The group added that this “should be given due and proper consideration”.
Frasers said it “has sought to engage with Challice directly”, presumably to mete out an attractive-enough offer for Challice to sell its majority stake.
That is despite, as Frasers today acknowledged, “Challice has no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking with regards the possible offer”.