Mulberry announced on Friday that it was planning to raise £10m through the issue of new ordinary shares and a retail offer of up to £750,000. This came alongside the company’s full-year results, which showed it swung to a reported pre-tax loss of £34.1m from a profit of £13.2m a year earlier.

The company, which first invested in Mulberry in February 2020 and now owns a 37% stake, said it was not aware of the proposed subscription until immediately prior to the announcement.

Since then, Frasers said it has taken "quick action to consider and assess the possible options available".

"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," it said. "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."

As a result, Frasers later submitted a non-binding indicative offer for Mulberry at 130p per share in cash. This implies a valuation of about £83m and is a premium of approximately 11% to the closing share price on 27 September.

"We have long been supportive of the brand and commercial opportunities available to the company," Frasers said.

"With our leading retail expertise and presence, and best in class distribution capability, we believe Frasers to be the best steward for returning Mulberry to profitability."

At 1050 BST, the shares were up 14.7% at 134.80p.