Frasers, the company that currently holds 37% of Mulberry’s shares, announced that it has made a non-binding offer for the shares that it does not currently possess.
With its 130p per share offer, Mulberry is worth £83 million.
According to Frasers, it constituted an 11% premium over Friday’s closing price.
Mulberry had announced earlier that day that it was going to raise money by selling 750,000 additional shares to current owners for £1 apiece in order to generate funds after suffering a £34.1 million loss in its most recent fiscal year.
Additionally, it made an attempt to raise £10 million through what its majority shareholder Challice dubbed a subscription offer.
The Somerset-based company, which is most recognized for its handbags, has been hurting due to the declining global market for luxury goods.
While there’s no indication that it’s in imminent danger of collapsing, its financial statements issued a caution that, should the downturn continue, it would create a “material uncertainty which may cast significant doubt on the group and parent company’s ability to continue as a going concern.”.
