Frasers Group has backed the Alliance family’s acquisition of N Brown Group as it ramps up its bid for Mulberry.
The Mike Ashley-backed group will sell its 20.3% stake in N Brown but said it “looks forward to a strategic relationship” with Joshua Alliance and N Brown post acquisition.
The group added that it “wishes Joshua Alliance and the N Brown management team every success for the future.”
Frasers confirmed it is also moving forward with a revised cash offer of 150 pence per share for Mulberry as the group continues to target the embattled luxury retailer, despite Mulberry majority shareholder’s Challice’s rejection of Frasers’ previous bid.
The luxury handbag retailer’s major shareholder, which owns a 56% stake, said: “Challice has no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking with regards the possible offer.”
It pointed out that the Flanners owner would be unable to take over Mulberry without its support, and said: “Challice hopes that by making its position clear, Frasers will be encouraged to announce that it does not intend to make an offer for Mulberry.”
The retail giant said it acknowledges Challice’s statement and said it will be “seeking to engage directly” with the majority shareholder as a result.
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