THG confirms takeover proposal from Apollo
Online retailer THG has confirmed it has received a highly preliminary and non-binding indicative takeover proposal from private equity firm Apollo Global Management.
As a result, the Manchester based company, which was previously called The Hut Group, saw shares surge by over 40%.
Responding to recent press speculation, THG said in a brief statement that there can be no certainty that any firm offer will be made.
A further announcement will be made if and when appropriate, it added.
Under takeover rules, Apollo has until 15 May to either announce a firm intention to make an offer or walk away.
Nevertheless, the firm’s stock is still down by over 80% since it floated on the London stock exchange at a valuation of £5.4 billion in January 2021.
The group had a market valuation of around £1.2 billion after the takeover interest was confirmed.
The business was founded by Matt Moulding and John Gallemore in 2004 and has grown through a raft of acquisitions of online retail brands, such as Myprotein and Cult Beauty, but has seen its valuation tumble in the past two years as cost inflation has impacted profitability and the firm has faced scrutiny over its corporate governance.
Last year, the company received a £2.1 billion takeover approach by a consortium led by Belerion and King Street Capital Management but rejected the move.
The suitors walked away from talks soon after while interest from British property developer Nick Candy also fizzled out.
