Mulberry: Ong family gives Mike Ashley the cold shoulder

The billionaire owners of the British luxury handbag manufacturer Mulberry have made it clear that they have no interest in selling the company to Mike Ashley's retail empire. The investment vehicle Challice, owned by Singaporean businessman Ong Beng Seng and his wife Christina, described the offer from the Frasers Group as a 'distraction' that they will not consider. With a 56.4 percent stake, the Ong family is the largest shareholder of Mulberry. In a communication to investors, Challice stated that neither the sale of Mulberry shares to Frasers is under consideration, nor will any commitments be made regarding the potential offer. The Ong family supports the company and its current management team and sees long-term potential in the Mulberry brand. They added that the timing for a sale is inappropriate and regretted the disruptions that the potential takeover bid could cause for the company and its management. The Frasers Group, currently the second-largest shareholder in Mulberry, had recently increased its offer for the iconic bag label from £1.30 to £1.50 per share, equating to a company valuation of around £111 million. Despite the growing interest, Challice reaffirmed that Frasers would not be able to achieve the necessary majority of over 50 percent of the shares without their support, and it would therefore be advisable to forgo an offer. The Frasers Group recently criticized the lack of a plan to improve Mulberry's situation and warned of the need for additional financing in the coming years. Nevertheless, the company reiterated its belief that, with the right support, it could strengthen the traditional British brand. The Frasers Group declined to comment on Challice's recent rejection.