Member Info for Yesimabeliever

Just had the same thought. If he has lost QIA and Balderton and just sneaked over 50% with that raise Chair & BoD asleep at the wheel

So do we think the capital raise and dilution has got Matt and friends back above 50% even without Balderton & QIA. If it has, he truly is a tw&t

I concur OSG on the comparison with the Apollo approach. With Balderton/QIA missing in action on the fundraiser, it isn’t clear to me that MM has the 50% to control this process as he might wish.

I’m relaxed about the proposed Ingenuity valuation as I’m able to roll in, but if I was an II/PI that couldn’t roll in for one reason or another I would be far from it.

An inbound bid for Ingenuity would make things really interesting. Chairman silent on the whole affair, if I was him I’d be drumming inbound interest on Ingenuity and a bit of competitive tension to ensure exiting Ingenuity shareholders get a proper market valuation rather than MM/BoD made up one. JMO

Btw ehphemeral - a bit rich for the FT and the city to critique the BoD for taking Ingenuity private. They forced it by ascribing zero and negative value to it over the last 3 years. The value of the demerger deal doesn’t really matter because anyone can roll in if they choose. The lack of liquidity is an issue for some and they have my sympathy, but the city has forced that it wasn’t MM’s first choice.

As for the critique of the capital raise for Ingenuity being done in THG vs Ingenuity, if they raised the money in Ingenuity it would have meant forced dilution of PI’s on Ingenuity. This way PI’s are kept whole if they wish, and a route out it they don’t. Yes it’s a low valuation, but public markets value it a zero (or negative), and if you think that is wrong like I do, roll in. A fair deal IMO.

As for Apollo bud, if they value Ingenuity at higher, they are very welcome to bid for Ingenuity or the whole again…

Remain and Ingenuity. I want the quicker payday on plc, and then Ingenuity is a longer term punt that could play handsomely. I also don’t think lowly Pi’s will get an over allocation of Ingenuity. MM & mates will prioritise themselves IMO. Oh and Mike Ashley. Wouldn’t be suprised at all for him to get 10% of Ingenuity for his £10m. Much more meaningful for him than 1% of THG.

Don’t be surprised to see deeper Frazers partnership with Ingenuity in the future. Ashley wouldn’t have wanted that announced before he bought in on the cheap, the cunning bugger. Expect announcements after he trousers 10% of Ingenuity on the demerger. JMO

For those saying that Ingenuity is too cheap and a MM stitch up, take up your shares and roll in. I am.

@osg do you think Ashley’s £10m will all end up as Ingenuity shares? 1% of THG seems irrelevant

Subject to seeing the detail, I’m going to be taking up Ingenuity.

The way the deal has been structured, I should see a healthy return on my THG plc shareholding when it rerates. Ingenuity then becomes a longer term “punt”. An option. Not expecting a capital event there for 3 to 5 years.

Given Ingenuity’s lowly valuation vs capex in, I don’t fancy letting MM & friends walk off with the tech/IP/infrastructure etc that has cost literally billions to build. There is risk to this, the model will remain capex hungry, so there will be dilution along the way. But I do believe THG can carve a niche as an enterprise D2C services provider with global reach, leveraging their emerging expertise in low cost, high volume fulfilment. If the THG story teaches us anything, D2C is hard to do well and I do believe brand’s will need 3rd party services expertise rather than trying to do it all themselves.

Good luck all.

Judging by the names who weren’t on the cap raise RNS I don’t think mm has the votes by default to block a bid for the whole or ingenuity…but that is speculation

The potential dillution down the line does concern me,

Board have capped Ingenuity valuation so low it is almost inviting a bid.

Although it’s not ideal tying up capital in something illiquid, it’s so cheap vs capital invested I’m viewing it as a cheap “option” and will roll in.

Roll on another week in the THG circus

@ Oxford, MM can’t be CEO of both. For now he stays with THG as CEO and Crane/Ward will run Ingenuity.

Would expect MM to be NED on Ingenuity Board until such time as he leaves THG CEO role, then would expect him to go Chair at Ingenuity.

If I can hold in my ISA or Reeves doesn’t do something silly with CGT I’m going to roll into Ingenuity. It looks cheap relative to the capex in, momentum has built this year. I may live to regret it, but Ingenuity is a scaleable with sticky recurring revenues, there will be investor interest from US if it can keep up progress IMO.

I’ll be holding THG plc into middle of next year in the hope that they can get nutrition firing again and we get a full rerate. MM defended nutrition management over the rebrand execution on the investor call, so the decision to proceed this year after 3 years of missing numbers sits with him. A baffling decision.

@tuba unclear at the moment

@snows people are talking about whether you take up your Ingenuity entitlement, or swap for more remain co. Which you will have the choice as part of the demerger process

Hadn’t thought about outside ISA CGT issues if changes happen.

Combing that with lock in would be a deal breaker for me.

@oohahh and I have been debating MM remaining as plc CEO. His status is toxic with UK investors so a drag on value, so he can’t be a long term solution.

So does MM break up remainco plc through selling Beauty &/or Nutrition and then go?

Not clear where his support stands now, QIA and Balderton were conspicuous by their absence in the capital raising RNS.

@jed, if you don’t take ingenuity, you swap your ingenuity shares for THG with MM’s key ingenuity backers…so no dilution as they are happy to take more Ingenuity.

It was a much improved performance by MM on the call.

For once analysts asked the right questions, and I was satisfied with MM answers and delivery.

Less than impressed by his linked in post that founders are supposed to be taking out money not reinvesting. Wrong given how much investor capital he has toasted at current share price, he needs to show so humility.

As it stands, I’m viewing Ingenuity as a cheap option that I’ll prob take up due to the depressed Ingenuity valuation vs capital put in. Still believe that business has potential.

Re remainco, I’ll stay invested for the rerate and reassess middle of next year.

Similar to OohAah I have concerns with MM at the helm, THG plc will continue to trade at a discount due to mistrust. They either need to break the group up to realise maximum value, or replace MM and shunt him off to Ingenuity.