Tok&Stok Founders Defend Low-Price Bid for Mobly, Citing ‘Significant Risks’

The founding family of Tok&Stok states their offer for Mobly (MBLY3) reflects “significant challenges and risks” facing the furniture retailer.

The Dubrule family proposed acquiring Mobly for R$83.5 million ($13.9M) on March 3, 2025, following months of corporate tension. Their offer values Mobly shares at R$0.68 each, less than half the R$1.39 closing price on February 28.

The Dubrules aim to purchase 122.8 million shares and gain control of the company they previously opposed selling. Mobly’s board quickly rejected the proposal. Shareholders representing over 40% of the company’s capital have already refused the terms.

The board cited the significant discount to market price and book value as primary concerns. The takeover attempt represents a dramatic reversal in Brazil’s furniture retail landscape.

Mobly had finalized its acquisition of Tok&Stok just months earlier in November 2024. That deal created one of Brazil’s largest furniture retail chains with 67 stores and annual revenue of R$1.6 billion ($266M).

Financial struggles plague both companies. Mobly has accumulated losses of nearly R$685 million ($114M) since its 2021 IPO. The company continues to burn through R$140 million ($23M) annually despite reducing operational cash consumption by 37%.

Tok&Stok’s Acquisition Struggles

Tok&Stok carries approximately R$399 million ($66.5M) in debt following years of declining sales. The company closed multiple underperforming stores, reducing its footprint to 51 locations.

The Dubrules justify their low offer by highlighting Mobly’s continuous unprofitability and limited stock liquidity. They believe their extensive industry experience could revitalize both brands through combined operations.

The proposed deal requires removal of Mobly‘s “poison pill” anti-takeover provision and various creditor approvals. These conditions appear unlikely to be met given the strong shareholder opposition.

This corporate battle continues against a backdrop of challenging market conditions for Brazilian furniture retailers. Both companies seek operational synergies and improved cash generation amid shifting consumer preferences and economic pressures.

If successful, the Dubrules would control a merged entity with significant digital and physical retail capabilities targeting different consumer segments.

The Tok&Stok founders must now decide whether to improve their offer or abandon their acquisition attempt.

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