Tycoon Mike Ashley moves to seize luxury brand Mulberry with £83million offer
MULBERRY faces a handbagging from Mike Ashley after the tycoon launched an £83million offer and declared the luxury brand’s “status quo is an untenable position”.
Mr Ashley’s Frasers Group, which already owns a 37 per cent stake in Mulberry, launched its 130p-a-share bid after complaining it had been blindsided by Mulberry’s cash call on Friday night.
Mulberry, which is best known for its £1,195 Alexa handbags, wants to tap investors for £10million after slumping sales knocked it to a loss.
Mulberry’s shares had started the day plunging by 12 per cent on the back of its cash call, but Mr Ashley’s takeover approach sent them rebounding 5.5 per cent higher.
Frasers had briefly considered a takeover in November 2020 when Mulberry was worth £124million.
Frasers said: “We believe the status quo to be an untenable position for Frasers and the other minority holders of Mulberry shares . . . we believe Frasers to be the best steward for returning Mulberry to profitability.”
Mr Ashley will now have to go head to head with Mulberry’s biggest investor, Challice, which owns 56 per cent and is controlled by the Singaporean entrepreneur Christina Ong.
Mulberry’s annual report, released on Friday night, revealed it could breach its banking covenants if its sales tumbled by a worst-case scenario of 14 per cent.
It is understood that Mulberry and the Ong family will reject Mr Ashley’s approach as a lowball attempt.
Sources highlighted Ms Ong had been a long term investor and supportive of the cashcall and Mulberry’s recent hiring of new chief exec Andrea Baldo from Ganni.
Saga opens old wound
THE MULBERRY saga has been a painful reminder for Mike Ashley of his car crash at Debenhams.
His £180million stake was wiped out when the store hit the wall after repeatedly turning down his overtures. Even in administration it snubbed him.
Alongside its takeover approach, Frasers Group said yesterday as it made a play for Mulberry: “Frasers will not accept another Debenhams situation where a perfectly viable business is run into administration.”
At Debenhams, Mr Ashley offered the department store a loan lifeline, but only with hefty conditions.
It appears Mulberry is from the same playbook.
He may just want better terms for Mulberry bags in Flannels and House of Fraser shops.
Aston on the kids
SPORTS car-maker Aston Martin shed almost a quarter of its value yesterday after issuing another profit warning.
The brand, favoured by James Bond, said it would make 1,000 fewer cars this year because of supply chain snags.
The warning came as its losses hit £216.7million, up from £142.2million last year.
In further woes for the car industry, Vauxhall owner Stellantis slashed its profit margin forecasts for next year.
REA moving on
AUSTRALIA’S REA GROUP has dropped its pursuit of Rightmove after the UK property website rejected a fourth £6.2billion offer.
REA said that it was “disappointed” that Rightmove did not give it extra time ahead of a bid deadline of yesterday, which it said “impeded our ability to make a firm offer”.
Rightmove said REA’s offer was still “unattractive”.
Shares in Rightmove fell by 7.6 per cent to 617.40.
REA Group is majority-owned by News Corp, which also owns The Sun.
A tonic for LSE
A PROTEIN powder and vitamins business founded by a former scaffolder is giving the London Stock Exchange a much-needed boost.
Applied Nutrition, set up by Thomas Ryder in 2014, confirmed yesterday plans for a flotation that will value it at £500million.
Ordinary investors will also be able to invest in the listing via a share offer through broker Retailbook.
Last year Applied Nutrition made £86million in revenue.
Mr Ryder said: “We are only scratching the surface of our growth opportunity.”
HOUSE prices have climbed at the fastest rate in two years.
They were 3.2 per cent higher last month compared with last year, said Nationwide.
Prices rose by 0.7 per cent on the previous month, taking the average property value to £266,094.