THG, the online retail technology company formerly known as the Hut Group, has seen its shares fall by nearly 10% after ending takeover discussions with private equity firm Apollo. The company said Apollo's offer was an inadequate valuation, and the board unanimously decided to terminate all talks.
THG, which owns brands such as LookFantastic and MyProtein, stated that after a short period of discussion, it became clear there was no merit in continuing engagement. The board, supported by shareholders representing a majority of issued share capital, rejected the indicative proposal based on inadequate valuations and offer structures.
The company has been subject to previous takeover interest from investors including property tycoon Nick Candy and a bid from Belerion Capital and King Street Capital Management that valued the business at £2bn. Shares have now wiped out 90% of THG's market value since its listing in September 2020.
Russ Mould, investment director at AJ Bell, commented: 'The misery around THG goes on. Investors hoping a takeover would put both them and the company’s torrid existence as a public entity out of their misery will be disappointed.'
THG co-founded in 2004 by Matt Moulding and John Gallemore, floated in London at an opening valuation of £5.4bn, which has since fallen to £1bn. Pre-tax losses tripled to £550m in the year to 31 March. Charles Allen, THG's chair, said the board remains confident in the company's strategic direction and long-term prospects as an independent company.
