(Alliance News) - Retailer Frasers Group PLC on Thursday said it has acquired an additional 7% stake in Mulberry Group PLC from Icelandic firm Kaupthing EHF, raising its holding in the handbag maker to just under 37%.
The acquisition of 4.3 million ordinary shares resulted in Frasers holding 22.1 million shares, representing a 36.8% stake in British fashion brand Mulberry, as well as contracts for difference for another 27,489 Mulberry shares. Earlier this month, Frasers raised its stake in Mulberry to 29.7% from 12.5%.
The owner of Sports Direct paid 150.00 pence per share for a total of GBP6.5 million. Mulberry shares were up 8.7% at 206.00 pence on Thursday at midday, giving it a GBP123.8 million market capitalisation.
As Challice Ltd currently holds approximately 56% of Mulberry's issued share capital, Frasers has been given permission by the UK takeover panel to not make a mandatory cash offer to other Mulberry shareholders.
Frasers said it reserves its right to make a voluntary offer for Mulberry. It is required by the end of the day on December 17 to either announce a firm intention to make an offer for Mulberry or walk away.
Shares in Frasers Group were down 0.1% at 472.40 in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Mulberry Group (MUL)
Frasers Group (FRAS)