Frasers (FRAS), Watches of Switzerland (WOSG) and the Investment Association
Frasers (FRAS) said it had subscribed for shares in the capital raising announced by Mulberry (MUL) on Monday that sparked its £83mn offer for the company.
Following the share issue, Frasers will hold between 36.9 per cent and 37.3 per cent of Mulberry’s shares, depending on the level of take-up by retail investors. Given majority shareholder Challice’s 56 per cent stake, Frasers was given dispensation from the takeover panel to take up its allocation without having to make an offer to the rest of Mulberry’s shareholders.
Mulberry’s announcement that it planned to raise £10.75mn from shareholders including Challice “to strengthen the company’s balance sheet” and support new chief executive Andrew Baldo’s turnaround plans irked Frasers, which said that despite being a substantial shareholder it only found out about the offer just before it was announced.
“Given this total lack of engagement, we believe the status quo to be an untenable position for Frasers and the other minority holders of Mulberry shares”, it said.
Mulberry rejected Frasers’ bid on Tuesday, arguing that it “does not recognise the company’s substantial future potential valuation”. MF
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Watches of Switzerland buys US media business
Watches of Switzerland (WOSG) has acquired editorial media business Hodinkee for an undisclosed amount, a move the luxury watch retailer said will help boost its market share prospects in the US.
New York-headquartered Hodinkee acts as “a gateway for luxury watch enthusiasts” through offering digital print and video content as well as watch and jewellery insurance services.
Watches of Switzerland said the transaction will be funded by existing financing facilities and won’t “materially impact” leverage. The company’s shares rose 2 per cent in early trading. CA