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Tokyo-based investment management company, Softbank Group, has reportedly offloaded its entire stake in the UK ecommerce company THG, after its co-founder and chief executive, Matt Moulding, agreed to buy the remaining 12.8m shares.
The news follows Softbank’s decision to liquidate its internal hedge fund after the company bought an 8% stake in THG in May 2021 for approximately £481m.
As a result of offloading its stake, the Japanese technology investment group has reportedly suffered a loss of £450m.
However, according to THG, Softbank will make £31m in proceeds after agreeing to sell 67.8m of the shares to Qatar’s sovereign wealth fund.
It is reported that the stake sale will take place on Thursday (20 October) at a price of 39p, which is below the company’s 45p closing price.
Since Softbank agreed to purchase a stake in the company, THG shares have reportedly depreciated to over 92%, as the business has suffered from slowing sales and contracting margins for some time.
Moulding said: “We at THG extend our thanks to SoftBank for their support as a financial and commercial partner, and we will continue to benefit from the relationships formed across their international technology portfolio.”
