Is it the first takeover step? Frasers Group have raised their shareholding in the capital assets of Mulberry as they moved from 12.5% up to 29.7%. In other words, they have nearly reached 30% threshold: according to the London Stock Exchange current regulations, such figure would obligate the company to submit a takeover bid for buying out the whole business. Frasers Group (which includes, for the records, House of Fraser, Sports Direct and Flannels) first joined the fashion brand’s capital assets last February, when they bought 12.5% of the company by spending 19 million pounds.
Is it the first takeover step?
The decision to invest in Mulberry is part of a “key strategic priority” set by Frasers. The aim is to enhance supply in their selling stores and therefore build up “more reliable relations with premium brands, with whom they are already in a partnership. We have been working with Mulberry for several years, at House of Fraser. We are looking forward to launching the brand onto our Flannels network in the next few weeks”, announced Frasers Group while talking to Retail Gazette.
Taking advantage of the crisis
According to theindustry.fashion, “the latest purchase deal further evidences Frasers close resolution to take advantage of opportunities arising from Covid-19 outbreak”. For the records, they might carry out some more deals. In fact, it is no coincidence that last June Frasers took a 5.1% share of Hugo Boss capital assets as well.
Picture taken from mulberry.com
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