Requisition for EGM
November 18 2002 - 2:25AM
UK Regulatory
RNS Number:9042D
Mulberry Group PLC
18 November 2002
Mulberry Group plc
("Mulberry" or "the Group")
Re: Notification of Requisition for EGM
The Executive Board of Mulberry Group plc has received notice for a requisition
of an Extraordinary General Meeting. The Group intends to issue a circular to
shareholders in response shortly.
Enquiries
Alex Glover Tel: 020 7591 3999
David Wynne-Morgan
18 November 2002
The attached announcement was released to media on 17 November 2002.
Mulberry Group plc
("Mulberry" or "the Group")
Statement re Media Comment
The Executive Board of Mulberry Group plc, the luxury leather goods company,
notes today's media comment regarding Challice Limited's (the Ong-controlled
company) intention to call an Extraordinary General Meeting to remove Mr Roger
Saul as Chairman and Director of Mulberry Group plc.
Mr Saul, as Chairman of the Group, has the full support of the Executive Board
and the Non Executive Director, Robin Gibson, who is not associated with
Challice. Mulberry recently announced its intention to split Mr Saul's role of
Chairman and Chief Executive and the Group is actively seeking to appoint a new
Chief Executive. This comes at a time when Mulberry has achieved significant
success within the luxury goods and fashion arenas in the UK with recent ranges.
Consequently, this appointment is now being sought to exploit this success on an
international level.
The Executive Board, who between them hold 42.5% of the Mulberry Group, believes
that this is a veiled attempt by Challice to take full control of Mulberry
without making an offer to acquire all shares not already held by Challice.
Challice's investment made in 2000, in return for 41.5% of the Group, was based
on the condition of the rollout of the Mulberry business in the United States,
comprising a minimum of five outlets including a flagship store, along with
preference shares which were exercisable upon completion of this commitment.
When exercised, these shares would have increased Challice's holding to over
51%. Since this investment, Challice has not commenced with any plans to expand
the Mulberry business into the United States.
Roger Saul commented:
"I am not surprised by this action of Challice. When I initiated this
relationship with the Ongs, it was on the absolute condition that they would
finance and fulfill Mulberry's roll out programme into the United States. I was
looking for a partner with the capacity and track record to develop Mulberry in
this important market. The Ongs fitted this criteria. This programme has not
been forthcoming, despite ongoing promises from Challice, and the Ongs have
repeatedly tried, by various means, to take control of Mulberry without honoring
this commitment.
"We have recently asked the Ongs to clarify their intentions: to either invest
in the Group under the original terms of the agreement or to offer their shares
to me, again under the original agreement. They have refused to do either. Their
refusal to either support the Group or withdraw as a major shareholder, is
clearly jeopardizing Mulberry's ability to exploit the brand potential at a time
when Mulberry is popular worldwide. As a major shareholder with 38% holding, my
interests are fully aligned with all shareholders."
Over the last two years, there has been significant investment in the Mulberry
brand to position it as one of the leading international luxury brands. Last
year, the Bond Street flagship store was opened following a #2.75 million
investment as the start of this important roll-out programme.
Consequently the Group has succeeded in increasing sales despite the impact of
September 11 and continuing difficult market conditions.
A circular will be sent to shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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