THG shares plummet after bid talks terminated
Shares in e-commerce retailer THG slumped 30.45p (29.04%) after one of its suitors walked away from a potential bid.
Belerion Capital Group said it no longer planned to make an offer for the firm.
THG, formerly The Hut Group, whose shareholders include Scottish investor Sir Tom Hunter, said in a stock market statement that it will not proceed with any of the recent approaches for the firm which were “unacceptable and significantly undervalued the company”.
It said all approaches had been unsolicited and “after consulting with THG’s major shareholders and taking advice from the company’s advisors, the board has not considered it appropriate to provide due diligence access to any of these parties,”
Accordingly, “the board has determined that it is not appropriate to seek an extension to the deadline set out in the company’s announcement dated 19 May 2022.”
The company had received an indicative non-binding proposal from a consortium led by Belerion Capital Group and King Street Capital Management which was rejected by the board.
“While THG is clearly aware of the macro-economic challenges, the company continues to perform well, and in line with its own expectations,” it said.