Frasers backs N Brown takeover as it ups pursuit of Mulberry

(Sharecast News) - Mike Ashley's Frasers Group confirmed it was backing the £191m takeover of N Brown on Friday, as it continued its pursuit of luxury handbag brand Mulberry. Frasers - which owns 20.3% of N Brown - said it had signed an irrevocable undertaking to vote in favour of the 40p per share cash deal.

The Aim-listed owner of Simply Be and JD Williams announced on Thursday that it had agreed to taken private by a Joshua Alliance, a member of its founding family.

In a statement on Friday, Frasers said: "At 40p per N Brown share, Frasers would have been a willing buyer or willing seller. As it is, Frasers is a willing seller.

"Although Frasers will have divested of its shareholding in full, [it] looks forward to a strategic relationship with Joshua Alliance and the N Brown team post acquisition."

The owner of Sports Direct, Cycle Evans and Jack Wills, among others, also provided an update on its £111m pursuit of Mulberry, the under-pressure leather goods brand.

Its 150p per share approach was rebuffed by Mulberry, which is also listed on Aim.

At the time, Mulberry said both it and Singapore's billionaire Ong family, which holds at 56% stake through its Challice investment vehicle, believe the brand could turn itself around. Mulberry appointed a new chief executive, Andrea Baldo, in the summer.

A takeover is not possible without the backing of the Ong family, but Frasers said it would now approach Challice directly - despite Challice stating earlier this week that it had "no interest" in selling to Frasers.

The retailer said: "Frasers believes that the revised proposal should be given due and proper consideration.

"Frasers also notes...the remarks that Challice has no interest in selling its Mulberry shares to Frasers. Accordingly, Frasers has sought to engage with Challice directly."

The blue chip, which has a 37% stake in Mulberry, has until 28 October to make a formal takeover offer or walk away.