THG slumps as Blackrock dumps shares
Shareholder: Sir Tom Hunter (pic: Terry Murden)
Shares in THG fell to an all-time low last night after it emerged that its largest shareholder Blackrock sold half of its stake in the online retail group.
Blackrock offloaded 58m shares in the e-commerce retailer at a price of 195p each, valuing the deal at £113.1 million, according to its bookrunner Goldman Sachs.
The price represents a 10% discount to THG’s closing price last night and well below the 500p the company floated at last year and the 800p peak in January.
Shares in the Manchester-based group, which runs websites including Lookfantastic and Cult Beauty, closed at 197.6p, a fall of 20p or 9.2% on the day.
Scottish entrepreneur Sir Tom Hunter holds a small stake in the company after selling down his holding earlier this year.
Russ Mould, investment director at AJ Bell said: “For a while THG was a stock market darling with investors clambering to own the stock in the belief it would play a key role in helping product manufacturers sell direct to consumers. Now it is losing fans at an incredibly rapid rate.
“Asset managers rarely sell after a stock has already fallen so much unless they’ve lost all confidence in the business and/or found something that completely changes the investment case.