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- Challice Limited said earlier this month it would not sell its stake to Frasers.
Mulberry is currently carrying out a £10.8 million fundraising plan in an effort to weather a sharp slowdown in luxury demand.
Mulberry has rejected a second takeover bid from retail giant Frasers, dismissing the bid as “unsustainable” following opposition from a major investor.
Mike Ashley’s retail empire made an enhanced cash offer of 150p a share for the luxury group earlier this month, valuing Mulberry at £111m.
But Challice Limited, which owns 56.4 per cent of Mulberry shares, said shortly after the offer that it would refuse to sell to Frasers.
Mulberry, which is currently carrying out a £10.8m fundraising plan in an effort to weather a sharp slowdown in luxury demand, formally rejected the offer on Tuesday.
He said the offer was “unsustainable” and that Mulberry would instead “focus its attention on boosting the commercial performance of the business”.
Mulberry reiterated its commitment to its capital raising strategy and credit facility announced last month under new boss Andrea Baldo, which it said would “put the group on a firm footing to ensure we are well prepared for future growth”.
He added that Frasers has been involved in the fundraising and “supports maintaining the value of the Mulberry brand”.
Frasers has previously said it would seek to negotiate with Challice “directly” over his refusal to sell. Mulberry was not part of these conversations.
City rules give the owner of Sports Direct, which owns 37 per cent of Mulberry shares, until 5pm on October 28 to make another offer or withdraw.
Frasers shares They rose 0.6 percent to 815 pence in early trading.
Mulberry Stocks lost 3.9 percent, bringing losses over the past 12 months to around 30 percent.
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