Times article - THG shareholders ‘would dismiss Apollo approach’20 Apr 2023 01:12
"An activist investor in THG believes that its shareholders would shun the recently announced takeover approach from Apollo Global Management even at a premium of 100 per cent.
Matthew Moulding’s online beauty business revealed this week that it had been subject to a preliminary approach from the American private equity firm. Under takeover rules, Apollo has until May 15 to make a proposal.
Sparta Capital recently became the second activist investor on THG’s shareholder register. City sources said that Sparta believed shareholders would not back an offer for the company even at a significant premium after it was also subject to bids from Belerion Capital and Nick Candy, the property mogul.
The sources said Apollo also could explore a take-private deal that offered investors shareholdings in the private business. The structure also would allow investors to benefit from operational improvements implemented away from the glare of public markets. Private equity firms often look at these deal structures to win over shareholders, but not all institutional investors are able to take part and benefit from the upside in future years.
In a recent post on LinkedIn, the social network, Moulding expressed frustration at how the company was regarded. He said a “select few” in financial circles and the media had been “building negative coverage” against public companies, including THG. “The increasing flurry of companies leaving London, with boards speaking out about the state of the market, is now bringing attention to the problem,” he said.
“You know things must be serious when some boards are even daring to publicly speak out about it, while still listed on the [London Stock Exchange], something that would have stirred an angry response as recently as last year.”
Sign In
Follow the stocks
