Frasers Group PLC announced on Friday an improved offer to acquire Mulberry Group PLC, of which is owns 37%, following Mulberry’s rejection of a previous approach last week.

On Friday, Frasers revised its bid to 150 pence per share, higher than the 130p offer made before.

The initial offer was rejected by Mulberry with the support of majority shareholder Challice Ltd.

The revised offer is the latest chapter in a spat between Frasers and the Bath-based fashion group, after struggling Mulberry launched an equity raise last week, of which Frasers said it wasn’t given enough notice.

Under the equity raise, Frasers subscribed for 4.0 million shares, edging its stake in Mulberry up to 37.3% from 36.9%. The 100p equity raise price was lower than the 130 pence per share acquisition offer.

‘As a committed long-term investor in Mulberry, Frasers would have been willing to underwrite the subscription in its entirety, potentially on better terms for the company. 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,’ Frasers had said in reaction to the fundraise.

The Sports Direct owner on Friday added to its criticism of Mulberry’s rejection of the offer, the subsequent equity raise as well as the ‘limited engagement it has been able to arrange with representatives of Mulberry following the initial proposal’.

‘Frasers is clear that there is no current commercial plan, turnaround or otherwise,’ the company said, noting it has ‘significant reservations that the £10 million raised under the subscription will be enough to support the business through the near to medium term’.

‘It is Frasers’ belief that this will lead likely to another capitalisation event within that timeframe unless there is immediate and very real change at the company,’ it added.

The 150 pence offer by Fraser is a 50% premium to the subscription price, 28% higher than Mulberry’s 118 pence closing share price on September 27 prior to the subscription announcement, and a 40% premium on the 3-month volume weighted average price of 107 pence at September 27.

‘Despite the above, Mulberry’s catastrophic results, its necessity for emergency funding and difficult market backdrop, Frasers strongly believes it can provide the appropriate insulation and investment to support a much-loved British brand,’ the company said.

‘As part of the Frasers portfolio, the Mulberry brand would be provided with the platform to ensure its long-term survival and success. That is why, as announced on October 4, Frasers participated in the subscription for 4.0 million Mulberry shares at the subscription price; and why it made the initial proposal and the revised proposal,’ it added.

Frasers shares closed up 0.3% at 811.00p on Friday in London; Mulberry ended 3.2% higher at 113.50p.

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