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How is MM and his pal getting their hands on all these so called 'tightly held' Kelso shares? 🤔
That 9.2% effectively in THG hands through Moulding and Monro's holdings.
MM definitely feeling threatened by whatever Kelso have up their sleeve.
Have they been canvassing large II's for a Section 303 Companies Act vote which could see a confidence vote in the THG Board or to deliver a set percentage of support to maybe the likes of Apollo returning with another approach and with a stated price for all to see.
Gripping stuff and no doubts about it that its Pacman Defence stuff now.
Mm to call an EGM I wonder? He's taken 6% now...
Pressure mounted on online retailer THG after a second shareholder called for it to break up its business. Dutch asset management firm OVMK, which owns 2 per cent of the London-listed firm, has joined Kelso Group in demanding that the beauty, nutrition and commerce platforms are spun off into separate companies.
Shares in THG increased 6.6 per cent, or 5.16p, to 83.26p taking its gains for the year to nearly 90 per cent.'
https://www.thisismoney.co.uk/money/markets/article-12843117/MARKET-REPORT-Sainsburys-shares-set-best-year-1992.html
Divide and conquer as the saying goes. I just wonder how many others, less publicly have voiced their support to Kelso since their RNS.
It just emphasizes who is watching the RNS's newsfeeds.
This should mark the start of things coming to a head, one way or another, and n the meantime our main holding in @THG is rising.
Wouldn't be selling either @THG or @KLSO at this present moment in time for they could both return several multiples of their present share price with the right news.
Only a matter of time before someone tries to oust BOD member at THG and force a break up. There's few who would vote against unlocking the potential of THG underlying value, so that makes you wonder what defence THG BOD have up their sleeves... they can't play Pacman with everyone
Netherlands shareholder backs KLSO and demands action.
https://www.businesswire.com/news/home/20231208382131/en/Statement-From-OVMK-Asset-Management-Netherlands-Regarding-the-Recent-Publications-on-THG-Plc
Very interesting times here. As a LTH in THG and also here this could all get very interesting.
Now THG affiliates, both past and present, have shown their hands by taking a stake and Kelso have RNS'd indirectly what caused that decision, it makes you wonder what happens next. Only 5% is required to put forward an EGM, so stopping at circa 3%, may represent a bit of a warning.
I don't blame you Moniman for taking profits, I have a little, but left some in also as think could be a good show to come!
Lol, I think if THG get back to 105p Kelso will be dumping again. JMO!
So now we know that on the 30th October, and prior to Matt Moulding (and Monro) buying their shares, Kelso sent a missive to the Board of Director impressing on them for a strategic update and specifically demerger / seperation action, (and also expressing theirs and everyone else frustration @THG). Looks like a definite cause and effect re the Pacman defence purchase to me.
The big question now has to be whether Kelso will pop up a resolution for Board change. It wouldn't be hard to get the 5% to invoke an EGM and get a resolution tabled. Its a ploy Goold is well aware of, for Boohoo used it whilst he was an NED (and probably the brains behind it) to replace the CEO at REVB. Its a direct lift from their Armoury of Tools in one of their previous presentations.
"Section 303 CA 2006 (Companies Act) – ability to appoint or remove directors (5%+ / 51% vote"
dyor.
Are Kelso getting nervous about their THG holding? Now that MM has a 3% holding, maybe he'll write a letter to Kelso asking them to mind their own business?
Glad I bailed out of here last week, I had a feeling once the MM froth has settled the SP would dive...if THG give another profit warning next week it won't be good for Kelso if they still have a big holding in THG, the Works are not looking to good now either? JMO!
And so, if we do a good job in converting these assets into cash, it could mean we’ve paid less than nothing for a large, US, premium beauty brand…..Even U"
THG having just RNS'd today the purchase of Biossance for $20Million maybe note the subtle innuendo in Matt Moulding's accompanying Linkedin post
This year, we've saved the best until last 👊
2023 has been lively for everyone – THG is no exception.
Emergency fundraisers from consumer-facing businesses were common in 2023 - businesses navigated inflation, exploding interest rates & a weary consumer. Sadly, some didn't make it to Christmas.
Anyone reading THG’s media coverage from a few blatantly dubious characters, could be forgiven for thinking THG might be one of them. Maybe they had a “Christmas drink” riding on it? Well, they may now be tucking into a smaller turkey this year instead.
Not only is THG still here, but we’ve grown stronger and had some good fun in 2023. And now we’ve managed to squeeze another piece of exciting news in before year end.
Adding to recent deals with CityAM and Williams Racing…….THG has acquired major US beauty brand Biossance.
UK market valuations make it near impossible for UK companies to buy overseas businesses. Instead, each day, foreign buyers gobble up UK companies like a game of “Pac-Man” 😉
Quality beauty brands usually sell for a multiple of 4 to 6 times revenues. The biggest beauty deal in 2023 saw L'Oréal pay 5 x revenues ($2.5bn) for Aesop, despite falling sales. UK companies simply can't compete in these deals.
Launched in 2015, Amyris went on to invest $300m-$400m in building Biossance. c$200m was invested in brand marketing alone, with Reese Witherspoon the key ambassador (see pic). And so the Biossance brand equity is strong, especially across the US.
In 2022, annual revenues reached almost $100m, but with losses of c$90m to match. Amyris, a bio-tech business, launched other, smaller, celebrity brands with a similar strategy.
The losses and cash burn finally caught up, and Amyris went bust a few weeks ago, and all brands put up for sale.
Usually, there’d be a queue of buyers for a brand like Biossance - a large, premium, clean chemistry brand, with sustainability at its core. Over 50% of sales are generated from Biossance’s own website, and it has a major US store agreement with SEPHORA.
But buyer interest was minimal. The only other serious bidder was a US PE firm.
Why? In short, because nobody has a THG Ingenuity division. Biossance has a fantastic management team, led by Catherine Gore, but they need a new supply chain, tech platform, and cheaper routes to market. We bring these.
Biossance should be immediately breakeven in THG. Our US and UK labs will support with manufacturing, and THG Ingenuity immediately brings both a new global website & distribution.
LOOKFANTASTIC.COM & Cult Beauty already sell c$2m pa of Biossance products, which we can now accelerate.
After 5 hours of bidding, THG won by agreeing to pay $20m for Biossance. Included in the deal is c$23m of stock and $6m of receivables.
Quite a lot of A trades going through. Someone accumulating still by the looks of it.
I'm not too sure about this being a
Pacman defence personally as the stake in THG is so small and it's been traded in the short-term, with gains beng realised.
I expect more TR1's in coming days and maybe even an EGM at the request of MM if he can get the sufficient.
Could be fun, GLA, AIMHO,DYOR.
Kelso are very well connected and with access to Private Equity. Zeus Capital for instance and Sarah Rajahani having just been recruited from Elliot Partners dyor.
The Times seems to think this is Moulding exercising the Pacman Defence. Instead of being the hunted - you become the hunter yourself.
New shareholder here today from the Moulding camp as well and a large uptick in volume. Interesting times.
It's behind a paywall but you'll be able to find it on the THG bulletin board.
https://www.thetimes.co.uk/article/moulding-employs-pac-man-defence-as-kelso-urges-thg-break-up-hldgtmrdm
https://www.investopedia.com/terms/p/pac-man-defense.asp
MM can't buy shares in THG if he Know of a takeover approach but can he buy indirectly though Kelso?
So that's another just over 6.2% into sticky hands and High Net Worth's.
There only limited stock so there can't be too much of any sizeable volume left should THG announce any bids, seperation plans, or indeed the same happening with any of the other 3 Kelso investments.
Get the point but Angus Monro resigned in Aug 2020 though no doubt still has a good connection to the company/Directors. Maybe makes it even more compelling a theory...
Very interesting
So that's just over 6.2% into the hands of THG Exec's with Angus Monroe adding just over 3%.
There will be purpose.
Took profit and then a non-exec of THG takes 3% of these. Clearly something looks to be going on here...
You took a profit, no shame in that, no need to justify