THG shares soar as Apollo makes approach
THG shares soared on the news, but are still well down on the IPO price
Shares in online retailer THG soared 40% today after it received an initial takeover proposal from US private equity firm Apollo Global Management.
The rise saw it valued at £1.2 billion, but its stock is still 80% lower than its flotation price in January 2021 when it had a market capitalisation of £5.4bn. No price was put on today’s approach.
The company, which was previously called The Hut Group, was backed at the time of its IPO by Scottish entrepreneur and investor Sir Tom Hunter.
In a statement to the market this morning, the board of THG said it noted press speculation “and confirms that it is currently in receipt of a highly preliminary and non-binding indicative proposal from Apollo Global Management on behalf of certain of its affiliated funds, to acquire the entire issued and to be issued share capital of THG.”
Apollo, which is also in talks about acquiring Aberdeen engineering group Wood, has until 15 May to make clear its intentions towards Manchester-based THG.
Its move on the e-commerce business comes two months after the latest profit warning from THG which was founded in 2004 by Matt Moulding and John Gallemore.