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THG rejects £2bn bid as Nick Candy eyes takeover

Belerion and King Street proposed a non-binding proposal of 170 pence per share to acquire the company, which THG said ‘significantly undervalued’ the company

THG announced it has rejected a takeover bid of over £2bn from the investment companies Belerion Capital Group Limited (Belerion) and King Street Capital Management L.P. (King Street).

The announcement comes as the board confirms it is in the early stages of considering a possible offer from Nick Candy, owner of venture capital firm Candy Ventures.

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The proposal is for the entire issued and to be issued share capital of THG, although the group said there is no certainty that any offer will be made.

Meanwhile, Belerion and King Street proposed a third unsolicited, preliminary and indicative non-binding proposal of 170 pence per share to acquire the company.

However, the board of THG said the proposal “significantly undervalued” the company and its future prospects, and accordingly unanimously rejected the proposal.

Both Candy Ventures and Belerion Consortium are required to announce whether they will make an offer for THG by 16 June 2022.

Shares for THG fell to 116.5p yesterday. The company was previously listed at 500p which rose 25% on the first day of trading to a high of almost 800p in the following months.

Its shares, however, have since fallen amid concerns about its corporate governance, doubts about a deal with Softbank, and conflicting valuations of its technology division.

Meanwhile, THG recorded revenue growth of 38.1% to £2.2bn last year, and its profits increased 33.6% to £974.8m.

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