(Alliance News) - THG PLC on Tuesday confirmed that it has terminated its partnership with SB Management Ltd, a subsidiary of Softbank Group Corp, with immediate effect due to "global macroeconomic conditions".
In May 2021, THG signed a financial and trading partnership with Softbank, under which both companies would explore potential commercial agreements with each other.
As part of the deal, Softbank would subscribe for USD730 million in THG shares, as well as hold the option to subscribe for a 20% interest in THG Ingenuity for USD1.6 billion, implying an enterprise value of USD6.2 billion at the time.
THG Ingenuity comprises the Hut group owner's Ingenuity platform IP as well as its operating trade and assets.
However, as a result of the terminated agreement, this call option is no longer able to be exercised.
In addition to the ended agreement with Softbank, THG also said it has completed the internal separation of its key trading divisions, which is expected to simplify its corporate structure and provide more flexibility in joining future partnerships.
Shares in THG were down 1.6% at 68.88 pence on Tuesday in London, while SoftBank's shares closed 3.2% higher at JPY5,681.00 in Tokyo.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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