Mike Ashley’s Frasers Group said it agreed to buy shares in Mulberry Group’s latest offering, increasing its holding in the luxury handbag firm it is looking to purchase outright. 

Frasers, which last week offered to buy the remainder of Mulberry that it does not already own, said it had successfully applied to Mulberry to subscribe for 3,961,100 shares in Mulberry at 100 pence per share. Mulberry is looking to sell 10 million shares to raise capital. 

“Frasers Group’s participation in the Subscription will result in Frasers Group holding interests in 26,110,537 Mulberry ordinary shares representing between 36.9% and 37.3% of the existing issued share capital, and voting rights, of Mulberry,” Frasers said in a statement. 

Under City rules, Frasers has until 28 October to make a firm offer for Mulberry or walk away. Its bid last week valued Mulberry at about £83 million overall.