THG has announced it has rejected all unsolicited proposals for the company deeming them to be “unacceptable” and to “significantly undervalued the company”.
In a statement released this morning ( 16 June) it said that as confirmed in the company’s preliminary FY 2021 results on 21 April 2022, THG has received indicative proposals from numerous parties in recent months. Furthermore, as announced on 19 May 2022, an indicative non-binding proposal from a consortium led by Belerion Capital Group Limited and King Street Capital Management, L.P., had been rejected by the Board of THG.
It added that after consulting with THG’s major shareholders, and taking advice from the company’s advisors, its board has not considered it appropriate to provide due diligence access to any of these parties.
It said: “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.
“While THG is clearly aware of the macro-economic challenges, the company continues to perform well, and in line with its own expectations.”
The news comes a week after thenline beauty retailer confirmed it is to gift shares to 500 of its employees.
The Manchester-based firm said it will reward the selected members of staff below executive level subject to “achievement of various targets”.
THG said an application has been made to the Financial Conduct Authority (FCA) and the London Stock Exchange (LSE) for 24,806,893 ordinary voting shares of £0.005 each to be admitted to trading on the LSE and to be admitted to the FCA’s Official List. Admission of the Ordinary Shares is expected to become effective on 14 June 2022.
The Ordinary Shares are being issued to VG Corporate Trustee Limited, acting as trustee of the THG Employee Benefit Trust.
THG said in a statement: “Consistent with the Company’s strong track record of incentivising employees, and in order to continue to attract and retain world-class talent, awards are being made to over 500 employees below Executive level, which are subject to the achievement of various targets. Subject to satisfaction of such targets, a third of the Ordinary Shares are expected to vest on 31 December in each of 2022, 2023 and 2024.”