Mike Ashley’s Frasers Group is considering handing over Mulberry after raising the luxury brand’s stake in Fight to 37%.
On Thursday, Frasers, formerly known as Sports Direct, announced a new roundabout in the company, acquiring 4.3 million shares from Icelandic Bank Couping in exchange for land 45 million.
Sportswear billionaire’s interest in the Somerset-based company was revealed in February when it bought 12.5% of its equity. Ashley was keen to move her retail empire to the upmarket and also invested in German label Hugo Boss in the summer.
In a stock exchange update, Fraser said the takeover panel waived the general requirement to make a bid for the entire company when acquiring a stake of more than 29.9%.
The discount was granted because the company’s largest shareholder, Chelsea, had a 56% stake in the car for the Ong family in Singapore. Yet Fraser says it “reserves the right to volunteer for the organization.”
Mulberry, famous for its basewater and Alexa bags, has been severely damaged by the coronavirus lockdown, which has forced its stores to close, as well as the departments that sell it and keep extra-expensive tourists at home.
According to the panel’s rules, Fraser has until December 17 to declare his intent to offer for the company.
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