Member Info for Sp28

Https://www.cityam.com/london-based-marex-files-for-new-york-float-in-huge-blow-to-the-city/

What have the UK/LSE got themselves in!!

Every single day either:

1. A company wants to delist from LSE

2. Being bought out by PE or someone else

3. Most major IPO's ignoring LSE

Very troubling times for the UK as a whole. When there is a chronic undervaluation in many of our companies, this is what happens.

Current Market value - 78p

Minimum SOTP - 225p

With a huge divergence to real value, like HOTC, THG is a sitting duck, Kelso know it. Ofcourse predators will strike again, its what they do, and precisely why Kelso is suggesting to drive up the share price! Do they know of another PE waiting in the wings??

Kelso are not suggesting anything novel, MM himself suggested separation of Beauty back in Sept 21 RNS!! As he felt a valuation of £6+ was way too low!

Absolutely no one would be surprised with more bids from PE's, with 3 separate global businesses, easiest takeover target on LSE where they can extract significant value instantly.

Eg. Buy it for say 225p, PE sell Nutrition to FMCG, they effectively get the Beauty and Ingenuity businesses for free, or even money on top, IMO this is the reason why THG is so so lucrative for them.

PE can't get "buy 1 business get 2 free" anywhere else on LSE, why THG is so unique, which is why they are always circling THG. That instant unlocking is too tempting for them. Even the separation is done for them Lol.

Let's see....

DYOR

This letter came on the 30th Oct.

Former Head of Communications from Elliot Advisors joined Kelso on 11th Oct! Mmmm.

If things continue this way, as Kelso have intimated, I would not be surprised with some more PE bids on the horizon. And this time no Golden Share.

PE are experts in extracting value. THG is easy picking, it has a clear target on its back, as a 3 business conglomerate, THG is pretty unique. As Kelso have said, you demerge, and value unlocked, if not PE can do this without breaking a sweat.

Once some of the big boys join Kelso's camp, and it feels like a few already have, MM will have no choice.

(IMO MM is looking for the MBO route rather than demerger route, that's just my thinking with everything said by him over the last 12 months)

Time is ticking.

GLA LTH's. Our unlocking moment has to come one way or another.

Wowzers

Exactly why many PI's are invested, fully aligns with LTH's thoughts, and when that unlocking event arrives, it's minimum 225p target

I reckon some of the bigger holders also want a demerger, and Kelso have been speaking to some of them...

""We acknowledge fully that Kelso is a small shareholder, but we believe that many other shareholders, both small and *LARGE*, share our view, having become increasingly frustrated and impatient""

1 RNS, and it's whoosh. Just have to hold tight, or add at this ridiculous low level.

IMO MM takes it private before separately listing.

DYOR

2017 - £2.5 Billion, 200p a share

https://www.google.com/amp/s/news.sky.com/story/amp/hut-group-hits-2-5bn-valuation-with-125m-old-mutual-investment-10984629

2018 - £3.9 Billion, 300p a share

https://www.retailgazette.co.uk/blog/2018/09/hut-group-rejected-3-9bn-takeover-bids-continues-aggressive-growth/

2020 IPO - £5.4 Billion, 500p a share

https://www.reuters.com/article/us-the-hut-group-trading-idUSKBN267102/

2021 Softbank Deal - £6.5 Billion, 595p a share

2023 - £1 billion!!!

Something doesn't rack up LOL

Yes, in todays climate may not be worth £6-7 a share but then no way in the world its worth just 80p LOL

Let's rewind back SIX YEARS, when it was a totally different company, even then it was worth 200p a share @ £2.5b, no wonder PE firms are all over THG.

Make it make sense.

DYOR

Ten entertainment group bought by US Private Equity

https://www.cityam.com/bowling-operator-ten-the-latest-london-target-for-us-private-equity/

TUI delisting for Germany

https://www.cityam.com/tui-mulls-london-delisting-in-potential-blow-to-capitals-stock-exchange/

HOTC, Mars buyout

https://www.cityam.com/hotel-chocolats-sweet-534m-mars-deal-leaves-london-market-on-a-sugar-high/

To name just a few.

What is going to be left on LSE/UK!!

With the huge undervaluations on LSE, as LSE is structurally broken, UK listed companies are simply being picked off as they are all in bargain basement territory.

Who is next?

We all know what our CEO wants 😉.

With 50%+ controlled by MM and Co, atleast we know THG can't be picked up for a bargain, unlike many other companies who are just sitting ducks.

The more you read, you begin to understand THG has just grabbed the biggest bargain in their history!

Biossance parent company was originally partly funded by the Bill & Melinda Gates Foundation.

As MM said $300-$400m was spent developing Biossance.

In 2022 Biossance reportedly had global revenues of $110m/£85m

Similar valuation to Aesop and industry buyouts at 5x revenue, and Biossance should be valued at £425m, a luxury beauty business. That's nearly half of THG's market cap Lol

THG just paid £15m!! THG's best ever purchase by a country mile. An absolute gift.

Can't even quantify all the indirect benefits, brand value, cost synergies, expansion on Ingenuity, production integration, and dare I say it, Reece Witherspoon at THG Studios 😉

Would not be surprised someone like Nestle taking a bite out of Myprotein!

Nestle Largest FMCG in the world, and one of Ingenuity’s major clients.

And they could do with a healthy addition to their portfolio!

Beauty with THG, any deal with any or all divisions unlocks that huge trapped value. Diversification and optionality all in one.

https://www.wsj.com/articles/nestle-says-less-than-half-of-its-main-portfolio-is-ranked-as-healthy-53778554

https://www.thebusinessdesk.com/northwest/news/2058611-the-hut-group-signs-worldwide-tech-deal-with-nestle-health-science

Https://www.thetimes.co.uk/article/f71f2a0f-a08c-4cd7-8044-f3c86c6176f5?shareToken=f377d6487bba51673a3b30d809d6adc2

Kelso Plc posted a Telegraph article in July this year which stated that the UK obesity problem cost the NHS £6bn a year. Today the Times lead article entitled ‘Economy pays heavy price as UK gets fatter’ discusses Henry Dimbleby the UK government’s former food adviser’s belief that the cost to the UK is far higher at nearer to £100bn a year. Mr Dimbleby is proposing smoking-style restrictions on junk food. Kelso has this year compared the sugar and chocolate problem to the world’s tobacco problem. In our RNS in April Kelso highlighted how global institutional investors were increasingly asking for breakdowns from larger food and beverage (F&B) companies as to the overall healthiness of their product portfolios. In a separate RNS in July we highlighted how Tescos and other large retailers are setting targets for how much of the total product on their shelves is ‘healthy’. Changes such as these, as well as consumer behaviour, are driving the large F&B companies to diversify their portfolios with larger proportions of nutritional products. MyProtein, part of THG plc and generating approximately $1 billion in global sales, is expected to significantly benefit from the growing preference for healthy lifestyles in the long run.

Nobody should be divulging personal info, esspecially on an anonymous bb, doesn't make an iota of a different to anyone how many shares someone else has! Cannot understand why people ask this question.

Stick to sharing useful info, simples.

IMO Everyone's got to a stage where they know SOTP is multiples and are firmly holding ignoring tiny fluctuations, and totally immune to any FUD.

Apollo offer, now HOTC deal, Kelso and numerous articles further justifying what we all know. It is not THG alone might I add, HOTC just proved it. Real value for them was nearly 3x market value, says it all really!

THG with 3 separate businesses, and a founder/CEO publicly airing his frustration, THG is primed better than most to unlock that trapped value. Everyone knows if the right deal can be negotiated, MM is off the markets in a flash. Besides that he has all the optionally to strike deal/s.

For THG Apollo approach proves serious institutions like the business, see it massively undervalued after conducting their own due deligence, and are willing to buy it. They offered significantly more than todays market cap for Ingenuity ALONE. Shows how structurally broken the markets are.

For a global brand like Myprotein. If a FMCG (remember through Ingenuity they have all the top FMCG's on tap 😉, Nestle, Heinz, Coca Cola, Mondolez, P&G to name just a few, i'm sure theres been some interesting conversations with them lol) offered 3x revenue for THG Nutrition today, so £2billion+, or 150p a share, will anyone be surprised? No, no one will bat an eyelid, some will say its a bargain. Last year 2 similar companies got investment, a German company at 5x revenue, and a US one at 11x revenue!

Anyway LTH's, enjoy your weekends.

Always DYOR

Luxs - with MM anything is possible. dyor

Whatever happens, bet your bottom dollar city ain't getting a whiff of his plans LMAO

Now that he is one of the largest holders in Kelso, just for banter, I'd call a meeting, propose to sell all the other investments and buy THG instead. And when THG is back over 100p, 'no you can't just sell up, I don't believe in fast money' Lol. Next Kelso statement will be interesting, I'm sure they have to run it past MM and Munro first 🤣

Makes you wonder why they didn't just buy into THG itself and gone into Kelso?

If something is pending, obviously they can't buy THG, but can they buy Kelso?

I'm sure he hasn't bought Kelso to diversify into NCC, The Works and Angling Direct Lol

Can't take your eyes of THG 😉

Matthew Moulding and Friends, can you please stick to buying THG shares LOL

Very intriguing to think what's going on.

Why would they not just by THG shares? Must be a reason? Will MM and Munroe now get a seat on the board of Kelso? What next, Sir Terry Leahy and Sir Tom Hunter and other friends of MM also going to chip in LMAO

IMO I have always believed MM and Kelso are both friendlies, they all know each other.

Just got to sit tight, and watch the drama unfold, and for LTH's THAT unlocking event.

How very intriguing.

Wonder what the plan is and the end game?

Obviously it's not 'just' an investment lol, it's a strategic plan/move by MM and Co.

MM never disappoints for drama, I'm sure someone will write a book once THG is back in private hands! LOL

Fascinating. Intriguing.

MM buys THG shares without buying THG shares.

Basically another director buy for THG.

If corporate event pops up atleast no one can accuse him of direct insider dealing LOL

What does this take BOD buys upto now in the last 18months, something like £13m, unprecedented on the FTSE. Not sure if there are many other companies out there at even half the amount of BOD buys in pure cash than THG.

Kelso have always said they are set up for a reverse takeover/separately list a division. Hang on a second, coincidentally THG have 3 separate divisions primed for a seperate listing LOL

Truly fascinating to see the speed at which they complete the full transformation and onboarding.

https://www.biotherm.com/

https://www.shuuemura-usa.com/

Agree, he gets a 40-50% backer, and he will be off the market in a flash.

We all know he is desperate to delist. Essentially he needs to similar deal to Apollo without the controlling right over Beauty/Nutrition.

Everyone knows THG is massively discounted, just look at HOTC. Just got to be in it to win when the RNS lands, hence will never ever sell ;). Unlocking event will come.

Just look at HOTC. 100p to 375p in a few months. And for us, Beauty and Nutrition will be starting from a floor of £0, as there is no value attached to it at all right now LOL

Https://www.businessoffashion.com/news/luxury/farfetch-reportedly-in-talks-to-go-private/

When will Moulding trigger taking THG private?

Markets are dead.

https://www.cityam.com/the-never-ending-sale-its-been-black-friday-all-year-on-the-london-stock-exchange/

Got to snap up the bargains and sit tight!

Https://youtu.be/fFvh8dvRQj0?si=Bq1ggTSZS2QZ5KKj

No smoke without fire/s!

Kelso

Multiple articles

This video

CEO comments

Unlocking event will come, one way or another.

DYOR

Https://www.motorsport.com/f1/news/williams-f1-team-lands-multi-year-partnership-deal-with-thg/10534991/

https://www-business--live-co-uk.cdn.ampproject.org/c/s/www.business-live.co.uk/retail-consumer/thg-tight-lipped-reported-myprotein-27943372.amp

https://www.luxurimag.com/ingenuity-taps-loreal-for-dtc-operations/