Frasers Group backs N Brown takeover as Mulberry pursuit continues

Frasers Group, which runs Sports Direct and Flannels, currently owns 20.3% stake in London-listed N Brown.

Henry Saker-Clark
Friday 18 October 2024 07:22 EDT
Frasers Group has backed a takeover of Jacamo and Simply Be owner N Brown (Nick Ansell/PA)
Frasers Group has backed a takeover of Jacamo and Simply Be owner N Brown (Nick Ansell/PA) (PA Archive)

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Mike Ashley’s Frasers Group has backed a takeover deal for Simply Be owner N Brown, as it also told shareholders it will continue efforts to strike a deal to buy luxury brand Mulberry.

Frasers Group, which runs Sports Direct and Flannels, currently owns 20.3% stake in London-listed N Brown.

On Thursday, the group, which also owns JD Williams and Jacamo, said it agreed a £191 million takeover by Joshua Alliance, whose family built up the home shopping group in the 1960s.

Mr Alliance already owns 6.6% of N Brown while the other members of the Alliance family own a controlling 53.4% stake.

On Friday, Frasers confirmed that it plans to sell its stake in N Brown to Mr Alliance for 40 per share.

The deal will net Frasers Group £37.9 million.

Frasers said it looks forward to continuing “a strategic relationship with Joshua Alliance and the N Brown team post-acquisition”.

In the same announcement to the stock market, Frasers also updated shareholders on its efforts to buy handbag maker Mulberry.

Earlier this week, Mulberry said it would assess a second takeover approach from Frasers, which valued the fashion business at around £111 million.

A £83 million approach was rebuffed by Mulberry earlier in the month.

Mulberry said it would talk to advisers over the improved deal, although majority shareholder Challice, a group controlled by Singaporean entrepreneur Christina Ong and husband Ong Beng Seng, said they had “no interest” in selling to Frasers.

On Friday, Frasers stressed that it believes the sweetened offer “should be given due and proper consideration”.

It also noted the comments from Challice and said it has therefore sought to engage directly with Challice over its proposal.

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