Market report

THG shares soar on private equity takeover rumours

Sir Tom Hunter
Minority shareholder: Sir Tom Hunter

Shares in THG, formerly the Hut Group, rose strongly following a report that private equity firms Advent International, Leonard Green Partners and Apollo were circling the e-commerce company in which Sir Tom Hunter is a shareholder.

According to markets blog Betaville, Advent is working with advisers from Goldman Sachs on its interest in THG alongside the company’s founder, Matt Moulding.

There has been speculation about a takeover of THG since last year when founder Moulding suggested in an interview with GQ Magazine that he might be interested in quitting the stock market following the company’s flotation in September 2020.

It was the biggest London IPO since the Royal Mail in 2013. Investors piled in, sending it value rocketing.

But shares in the group have tumbled more than 80% as it was accused of failing to live up to promises. Moulding pinned the blame on short-sellers.

Following today’s report THG shares were up 21.5p (18.5%).

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