Mulberry Shares Surge as Majority Shareholder Rejects Frasers Takeover Bid

Mulberry Group plc (LON: MUL) shares jumped 12% on Monday following a statement from the company that its majority shareholder, Challice Limited, has “no interest” in selling its stake to Frasers Group plc (LON: FRAS).

The rejection comes in response to a revised takeover proposal from Frasers, which offered 150 pence per Mulberry share.

The news sent Mulberry's stock price higher in early Monday trading. At the time of writing, the stock is trading at around 126p, after initially climbing to a high of 137p a share.

Challice reportedly has the backing of a Singapore-based business owned by billionaires Christina Ong and Ong Beng Seng.

Challice Limited, which holds a significant 56.4% stake in Mulberry, made it clear that it would not be providing Frasers with any irrevocable or other undertakings to facilitate a deal.

The major shareholder said it  it “has no interest in either selling its Mulberry Shares to Frasers or providing Frasers with any irrevocable or other undertaking.”

Mulberry said its board of directors is now evaluating its options. The company added that there is no guarantee that a deal will materialise.

The revised offer from Frasers came after the initial potential takeover bid was rejected by Mulberry's board in September. The company had argued that the offer undervalued its business and future prospects.