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FTSE Russell, the global index provider, advises of the following indicative changes to the FTSE 100 and FTSE 250, based on data as of Friday 21st February 2025.

PLEASE NOTE:

The actual review of the FTSE UK Index Series will be conducted using data as at market close on Tuesday 4th March 2025. Confirmed rebalance changes will be announced after market close on Wednesday 5th March 2025.

Indicative FTSE 100 Additions Indicative FTSE 100 Deletions

Coca-Cola Europacific Partners Hiscox

Indicative FTSE 250 Additions

Atalaya Mining Copper

Hiscox

THG

Indicative FTSE 250 Deletions

Essentra

SThree

Wood Group (John)

THG market cap closed higher than indicative deletions, Am I missing something?

If he is the largest single shareholder in Ingenuity then he has more power than any director and has de-facto control. The largest shareholder is the 'Super Qualifying Shareholder'. This gives the right to appoint 2 directors and any major decision e.g. business plan sign off, new shares, bank loans, company sale needs his written agreement. A full list of what requires the sign off is in the Shareholders Agreement.

Hi Rock....things will be clearer after the Q4 trading results. In the last 3 years that has been 16,17 or 18 of Jan.

After that it will either be better or worse. I hope that they will show that the company has turned the corner as per MM's last call and Remain co is a growing, cash generating machine! However history has shown that that MM is good at finding new reasons for not meeting forecast

For the last 3 years, the Q4 trading results along with the outlook for the upcoming year have been posted on January 16, 17 and 18. I guess that is when the reality of all the 2024 changes will be exposed.

I understand the comment about legal due diligence taking a long time, however.....

As Alistair Crane was appointed in February, then the decision to demerge Ingenuity and head hunt and Executive Chairman must have started at least in December last year. There was no need to make any announcement until the due diligence was completed. The fund raising was completed quickly some weeks ago and the timeline published for the Circular and completion was completely under the control of the THG BoD. The draft ShareHolder Agreement should have been completed before any announcement.

The only variables left should have been the financial forecasts and maybe proposals for the first Ingenuity Board of Directors.

Seems that either this has not been properly managed or there is a disruption that was not forseen.

It will be interesting to see what is in the Circular regarding 2024 and 2025 revenue for both companies. I would expect the Chairman and CEO of IngenuityCo to own their forecast, maybe they have a different view to MM

I do not think it is certain that the THG Employee Trust will be able to invest in an independent private company. Trusts of this type usually have very tight rules. They should be able to increase their THG Remainco shares though

One of the important documents for Ingenuity will be the Articles of Association. For an IPO this is predefined. In a Newco it is for the Shareholders to agree. As Ingenuity is effectively a New Company this should be part of the prospectus. That raises the question of who will be responsible for its drafting and agreement. Usually that would be the task of the Chairman of the company. As THG will have no ownership of 'New Ingenuity ' then it will be interesting to see their role, if any, in the setup of 'New Ingenuity'.

Two of the important parts of the Articles of Association include election and removal of Directors and reporting to Shareholders.

Also, as Ingenuity already has a Chairman and CEO I will be interested to see what role there is for MM unless the current Chairman and/or CEO were temporary appointments who will step down after the de-merger.

2 thoughts. Firstly, if/when MM + supporters put in an offer to buy Ingenuity that will open the door to any third party to make a counter offer. The BoD would be duty bound to accept the 'best' offer.

Secondly, having worked for IT companies when they have been put up for sale, it scares potential customers who would want to know who they are contracting with!

The leases would have to allocated to either Ingenuity or THG corp depending on their use. After split it will be interesting to see how the management roles are split as Ingenuity already has a Chairman and CEO. Also after the split there will certainly be conflicts of interest and so there would need to be separate BoDs.

What I don't see is the role that the legacy directors would have with the conflicts of interest between two independent companies who (at least in the short term) will be totally dependent on the success of the other

According to Matt on the call, you will be able to follow Ingenuity if you wish to. Part of the 'magic' if Ingenuity is a separate company is that the holding changes from 1 company with £2b t/o to 2 companies with £2.8b t/o