UK's Frasers walks away from Mulberry bid (updated)

Mulberry

23/10/2024 14:11

(Adds background and Frasers comment in paragraphs 2-4)
       Oct 23 (Reuters) - British sportswear and apparel
retailer Frasers Group  FRAS.L  walked away from its plans to
buy Mulberry  MUL.L  on Wednesday, adding it remained concerned
about the governance at the British luxury brand. 
    Frasers, Mulberry's second largest shareholder did not get
the backing of Mulberry's controlling shareholder Challice in
its bid to buyout the loss-making brand. 
    "Frasers welcomes the presentation of a credible plan in the
near term... and in particular, would not like to see another
scenario where the board chooses to exclusively engage with
Challice in private on significant matters," Frasers said in a
statement. 
    Challice is backed by a Singapore-based firm owned by
billionaires Christina Ong and Ong Beng Seng and owns a 56%
stake in Mulberry.
    Mulberry, known for its leather handbags and belts, had
rejected Frasers' second proposal worth 111 million pounds 
($143.7 million), saying it was "untenable". 
    Shares in Mulberry were down 6.5% as at 1310 GMT. 

($1 = 0.7723 pounds)



 (Reporting by Prerna Bedi and Aby Jose Koilparambil in
Bengaluru; Editing by Arun Koyyur and Mrigank Dhaniwala)
 ((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))