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Slowdown: Mulberry has suffered a drop in sales and profits
Mike Ashley last night raised his offer for Mulberry from £83m to £111m.
In its second attempt to buy the troubled fashion brand, Ashley’s Frasers Group increased its offer to 150 pence per share.
The move came hours after Frasers, controlled by the businessman and owner of Sports Direct and House of Fraser, bought £10m worth of shares in online platform The Hut Group (THG).
This was part of a £95.4m fundraising by THG as it looks to spin off its Ingenuity technology division.
Last week, Mulberry rejected Frasers’ initial £83m offer after talks with its majority shareholder, Singapore billionaire Ong Beng Seng, who it said had “no interest” in backing the takeover.
Frasers owns 37 per cent of the struggling British fashion house and the Ong family’s Challice group has a controlling 56 per cent stake.
Mulberry has suffered a drop in sales and profits amid a slowdown in the luxury market, prompting it to oust its boss in a major restructuring.
But Frasers insisted last night that there is “no current business plan” at Mulberry.
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