Mike Ashley Seeks Board Seat After Mulberry Takeover Rejection
- Frasers Group's second takeover bid for Mulberry, valued at £111 million, was rejected, primarily due to resistance from the Ong family.
- Mike Ashley's company holds a 37% stake in Mulberry and is requesting a board seat, citing governance and financial concerns.
- The situation reflects ongoing tensions among stakeholders and highlights significant challenges facing Mulberry in the market.
In a recent turn of events involving the British handbag maker Mulberry, Mike Ashley, the owner of Frasers Group, expressed his dissatisfaction after his company’s second takeover bid was rejected. This proposal, worth £111 million, met with resistance primarily from the Singaporean Ong family, who control a significant 56% stake in the company. Ashley's firm currently holds a 37% stake and, despite facing rejection, is now demanding a seat on the Mulberry board. Frasers Group articulated their disappointment in the outcome, signaling their ongoing commitment as a supporter of the brand. However, they raised concerns over the lack of engagement from Mulberry's leadership in discussing the offers. Ashley’s company has pinpointed worries regarding Mulberry’s governance, the absence of a clear commercial strategy, and the financial struggles that the brand is facing amidst growing market challenges. This series of events highlights a contentious relationship between stakeholders and shines a light on the difficulties Mulberry is facing in a competitive environment.