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Suggest this is the route the THG activists will be advocating when they produce their open letters to the company - making public appears to be par to the course

Don’t think it’s disputable THG SOTP is multiples to current £m/cap

A plan to split Alibaba Group Holding Ltd. (BABA) into six units sent the company’s stock soaring Tuesday while introducing a potential model for global tech giants facing mounting breakup pressures. 

Alibaba’s American depositary receipts climbed (BABA) as much as 15% on Tuesday, its best performance since June, after the company announced a plan to separate its $255 billion empire into divisions that will raise funds individually and eventually explore initial public offerings. 

“This is a game changer in terms of raising the expectations for other companies,” said Tom Masi, portfolio manager at GW&K Investment Management. “If it is consistent with the direction that the government wants them to go in and shareholders respond positively, other companies are likely to pursue the same path.”

https://www.bloomberg.com/news/articles/2023-03-28/alibaba-breakup-shows-global-tech-giants-a-way-to-unlock-value

Looks that way Moody

Whoever is building the stake is using the Shorts to access volume and same time not let the price run away, they have a play book and working it smart
These shares then end up in sticky hands, when they trade its via one broker.
MM’s accumulating during parts of the day to what looks like fixed price instructions
they may be providing protection for 50% and max price on the day for the balance

Guess same tomorrow until we get that TR1

Doesn’t matter really Pearl

2.2M shares sold to 800K buys showing at moment
that was possibly a big push by Short Heavy Hitters and the lot (2.2M) will have been scooped up to sticky hands

Looks £1M of sales over 3 trades

Mopped up / dealt with

Iain Mc Bid to buy the lot for over £2B with debt last year

Wonder if that’s the conversation ? MBO ?

Smart to see how these boys are building a stake

Not sure on how long after they breach 2.99% do they have to TR1? It’s only days

THG themselves may be issuing beneficial share notices and may now / know have a good idea who it is

Apologies - auto spell yeah

MM’s let that run down, picked everything up, guess to book build ,we will see the odd chunky purchase go through, Casanova again on the Offer to mop up

Shorts are handing the keys over to the buyer here, sticky hands take these shares out the trade

Agree Canary

Fair comments off Ste.

Just saying …

Steve, be careful backing against the Sparta story

You won’t until they issue a TR1

Are the MM’s hoovering up then they contract single line sale ?

Appears to be the case,Casanova in and out on the offer at times of spikes yesterday and last few weeks ?

Someone is building

Looks like whoever is on the offer just sweeps up the stock first thing that was sold in the last hour day before

I would focus on the CFO to broker guidance

Before we entered a close period the new CFO guided brokers and the ranges are on the THG web site
Suggest the spread is brokers taking a view on the margins on the Core divisions ex Ingenuity charges and restructuring costs to On Demand , £120M EBITA looks the average give or take
The CFO stresses under promise over deliver, so I would take this at the minimum

Nutrition EBITA margin is close on 15%
Beauty. 7%

Make your call on what percentage is paid across to Ingenuity, my call is 2% but there is no broker direction on this figure and it may need to be higher, we won’t really know until April

The below should be confirmed

Premium listing
Divisional breakdown
Potentially disclose overseas listings
Cost cutting £30M plus

Unless we can identify 1000 new full stack developers started since January - I’ve not seen this volume when researching but maybe others have ? - then THG have curtailed the intangible Capex which is pure SaaS driven and have focused on the pivot with Autostore /JV which is capex lite

If the above is the case and we include cost cutting we should see FCF positive Q1 as high as £25M - it’s a long winded calculation
Plus the £40M property disposal if it’s completed

We could see net debt down to £135M at this point - but we need the property sale for the full affect

Goldens point on growth is fair comment and highlights Nutrition and Beauty need to retain FCF to invest in their business’s

Another decent lumpy Buy just gone through 600,000
MM’s accumulating for a client
Paid 63p

Yeah one smart move Rock

Kelso and Sparta and their 25 co founders are now ‘ joined’ intellectually and have their outline game plan which I guess is similar

What we don’t know is how many of the 25 are buying independently and again via a platform

This my take on it Rock

Kelso investors - the list of 25 founder investors

Know who it is who is going Long THG , plus they have a good idea of what is coming up in April from THG, some smart well connected traders on that list

Some of them are shifting their shares to Spreadex to minimise their CGT, you wouldn’t do that and pay interest unless you were confident of a decent return

No idea what their ultimate game plan is but I would hazard a guess they will align with Sparta when the timing is right

It’s like a game of chess at the moment

Agree

First level of pressure will be the TR1 off Sparta, their track record is impressive
then when THG announce the restructuring alongside the premium listing that’s when the real squeeze comes.