Real estate mogul Nick Candy is considering buying the £ 1.4 billion online shopping group THG, formerly known as The Hut Group, which recently said it had rejected a number of “unacceptable” takeover approaches that the company underestimated.
Candy, a Conservative party donor with a £ 1.5bn fortune who is married to former Neighbors actor Holly Valance, now has until 16 June to make a formal offer or withdraw under the United States takeover rules. kingdom.
“Candy Ventures confirms that it is at a very early stage to consider a possible offer for the entire issued and issued share capital of [THG]”The company said in a statement to the London Stock Exchange on Thursday. “There can be no certainty that an offer will be made, nor about the terms of such an offer.
Candy, a Chelsea supporter who was recently linked to an offer for the Premier League club after being put up for sale by Russian oligarch Roman Abramovich, who was sanctioned after Moscow’s invasion of Ukraine, confirmed the approach but declined to give details. .
“I can’t speak right now, I’m about to premiere,” he said before the first screening in the UK of Tom Cruise’s sequel to Top Gun in London’s Leicester Square. “I can’t comment on that anyway.”
Candy Ventures acknowledged “recent speculation in the press” about attracting interest from tenderers in THG, prompting its investment vehicle to explore a potential bid.
Last month, the Manchester-based THG said it had rejected “numerous” recent approaches to takeovers as “unacceptable”.
THG, which operates beauty and nutrition websites including Lookfantastic, Cult Beauty and Myprotein, said there was interest from third parties but was not involved in any negotiations at the time.
The share price of THG, which fell 4% on Thursday’s close but could rise from bid interest when markets open on Friday morning, is currently down 116p. The company reached 500p in September 2020 and peaked at 837p last September.
The company is struggling to recover from a difficult year when it faced criticism for allowing boss and founder Matt Molding to serve as both CEO and CEO, which is against corporate governance best practice.
The board also signed a deal that allowed Molding to acquire a number of THG properties before giving them back to the company for millions of pounds a year.
Last year, the company reported a 35% increase in revenue to £ 2.2 billion, helping to increase adjusted profits by 7% to £ 161 million. According to the results for the first quarter of this year, THG’s revenue rose 16% to £ 520 million.
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