Connect with us

Hi, what are you looking for?


Mike Ashley’s Frasers Group weighs up bid for Mulberry

Mulberry Ashley deal

Mike Ashley’s Frasers Group is weighing a takeover bid for Mulberry after building its stake in the luxury brand to 37 per cent.

The Takeover Panel has granted Frasers a waiver from making a mandatory cash offer, ordinarily triggered once a stake surpasses 30 per cent, because the biggest shareholder, the Singapore billionaire Christina Ong, owns 56 per cent of Mulberry.

Despite this, the panel has insisted that Frasers makes a takeover offer by December 17 or walks away, in what is known as a “put up or shut up” to stop a target company being under siege for a prolonged period.

Frasers increased its stake in Mulberry by buying 5.3 million shares from the Icelandic bank Kaupthing at 150p a share. Mr Ashley’s empire, formerly known as Sports Direct, bought an initial 12.5 per cent stake in the handbag brand in February as part of his attempt to reposition his retail group and boost its relationship with brands.

Michael Murray, Mr Ashley’s son-in-law, is spearheading the so-called “elevation strategy” that has focused on revamping Sports Direct shops and investing heavily in its Flannels luxury boutiques.

Mulberry, founded in 1971, has 119 shops, selling handbags ranging in price from £475 to £1,295. The brand, best known for its Bayswater and Alexa handbags, is also sold in concessions including House of Fraser stores, which Mr Ashley owns.

Two weeks ago, Frasers doubled its stake in Mulberry to 29.7 per cent. Mr Murray said it reflected a “growing relationship” between the two companies and there were plans to promote the brand in Flannels shops.

Frasers acquired a £180 million stake in Hugo Boss this year, adding the German luxury brand to investments in retail such as its ownership of House of Fraser, Jack Wills, Evans Cycles, and Game Digital. It has had stakes in other businesses, including French Connection, Goals Soccer and Debenhams, that have ended disastrously.

Despite the illiquidity of the company’s ownership, Mulberry has been hit by the pandemic and the absence of shoppers in department stores and now has a market capitalisation of only £123.7 million.

In October it reported a 29 per cent fall in sales to £48.6 million and delayed full-year results showed that it had swung to a £14.2 million loss before tax compared to £1 million profit the previous year.

Ms Ong is known as the Queen of Bond Street for the number of shops she owns in the London luxury retail area. She has owned her stake in Mulberry since 2003 when she organised a boardroom coup that ousted Roger Saul, who founded the brand.

Read more:
Mike Ashley’s Frasers Group weighs up bid for Mulberry

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Globe Telecom, Inc. said on Friday that it had inked loan facilities with BDO Unibank, Inc. and Land Bank of the Philippines for P10...


Metro Pacific Investments Corp. (MPIC) announced on Friday that its president and chief executive officer, Jose Ma. K. Lim, will be retiring effective Dec....


REAL ESTATE developer Arthaland Corp. raised P3 billion from its Series D preferred share offering, according to the Philippine Stock Exchange, Inc. (PSE) said...


Venture capital firm Kickstart Ventures, Inc. on Friday said the Ayala group had invested in SlashNext, a company that combats phishing attacks. Kickstart manages...


Volunteerism has been a key part of Globe’s corporate culture through its various employee engagement programs. In contributing to nation-building, the company is encouraging...


The UK Government’s Flexible Working Taskforce has published practical guidance for employers designed to support hybrid working models, in a bid to help organisations...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.