THG rejects all takeover approaches as significantly undervaluing e-commerce firm
THG has rejected all recent approaches for the e-commerce beauty firm, stating the proposals had “significantly undervalued” the firm.
Matthew Moulding’s retail emporium had received indicative proposals from “numerous parties” in recent months, it had confirmed in its full year results earlier this year.
Last month, it also rejected an indicative non-binding proposal from a consortium led by Belerion Capital Group Limited and King Street Capital Management.
The consortium was reported to have given up the chase for a takeover of the retailer on Wednesday, by The Financial Times and Bloomberg.
In an update on Thursday to shareholders, the London-listed firm said all recent approaches had been unsolicited.
The board was in unanimous agreement that the proposals had been “unacceptable and significantly undervalued” the company.
After a consultation with major shareholders and guidance from advisors, THG said it would not be moving forward and providing due diligence access to any of the suitors.
“While THG is clearly aware of the macro-economic challenges, the company continues to perform well, and in line with its own expectations,” the firm added.
Property tycoon Nick Candy’s Candy Ventures has announced it has pulled out of the running for a THG takeover.
In an update on the London Stock Exchange later on Thursday morning, Candy Ventures said it did not intend to make an offer, despite previously stating it was in the “very early stages” of mulling a possible bid.
Shares plunged 10 per cent in early trading on Thursday morning and later sunk 18 per cent.