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Mike Ashley’s Frasers Group has revealed it has increased its stake in THG from 4.8% to 10.92%, according to the latest holding documents filed by the company.
It now holds 151,940,734 voting rights in the company.
The news comes as THG successfully fundraised £90m with the support from new investors and existing shareholders, including a £60m contribution from founder and chief executive Matthew Moulding.
The equity contribution was made up of £30m of new ordinary shares, and Moulding’s £55m convertible loan and £5m of partly paid shares.
THG also received a £10m strategic investment from Frasers Group to fund the demerger of its Ingenuity arm, “further underscoring their commitment to its multi-year strategic partnership with THG”.
According to THG, Ingenuity’s demerger will simplify THG’s business model, leading to an improved balance sheet, capex and cashflow profile. Following the demerger, the group would consist of THG Beauty and THG Nutrition.
Recently, Frasers also increased its stake in AO to 25.01%.
THG recently reported a decline in Q4 sales across some divisions, but remains on track to meet full-year expectations having officially completed the demerger of Ingenuity.
For the period ended 31 December 2024, THG experienced a 2.6% fall in revenues to £552.4m.
However, the group’s beauty division – which includes Look Fantastic and Cult Beauty – experienced a 4.6% rise in revenues to £1.1bn.
As a result, THG’s full-year performance for FY24 was in line with expectations, with continuing revenues rising 1.1% to £1.9bn on a constant currency basis.
