THG rejects offer of 2 billion British pounds, as Nick Candy plans to take over

THG has announced that it has rejected an offer to take over more than £ 2 billion from investment companies Belerion Capital Group Limited (Belerion) and King Street Capital Management LP (King Street).

The announcement comes as the board confirms that it is in the early stages of considering a possible offer from Nick Candy, owner of venture capital firm Candy Ventures.

The proposal is for the entire issuance and issue of share capital of THG, although the group said it was not sure that an offer would be made.

Meanwhile, Belerion and King Street offered a third unsolicited, preliminary and indicative non-binding offer of 170 pence per share to acquire the company.

However, the THG board said the proposal “significantly underestimates” the company and its future prospects and therefore unanimously rejected the proposal.

Both Candy Ventures and the Belerion Consortium must announce whether they will bid for THG by June 16, 2022.

Shares of THG fell to 116.5p yesterday. The company was previously listed at 500p, up 25% on the first day of trading to a peak of almost 800p in the following months.

Since then, however, its shares have fallen amid concerns about corporate governance, doubts about a deal with Softbank and conflicting assessments by its technology division.

Meanwhile, THG recorded revenue growth of 38.1% to £ 2.2 billion last year, and its profits rose 33.6% to £ 974.8 million.