By Charlie Conchie
Retail group THG has shut down takeover talks with Apollo after its board deemed the US buyout giant had tabled “inadequate valuations” for the firm.
Troubled THG, which has cratered nearly 90 per cent in value since floating on the London Stock exchange two year ago, first revealed it had received a takeover approach from the New York based firm in early April.
However, in a statement this morning the Manchester-based group headed up by chief Matt Moulding said it had shut down talks with the firm.
“It has become clear to the Board, supported by shareholders representing a majority of THG’s issued share capital, that there is no longer any merit in continuing to engage with Apollo,” THG said.
“Consideration and rejection of the Indicative Proposal has been on a basis consistent with all previous offers for the Company, some a matter of public record, which were also rejected based upon inadequate valuations and the nature of those offer structures.”
The firm added that the board had “unanimously determined that it is not in the best interest of THG shareholders to seek an extension to the deadline”.
News of a deal had sent shares surging beyondforty per cent last month after a torrid period in which THG’s value had plunged amid a tricky sales environment and a string of negative headlines.
Later in April, THG revealed an operating loss of £495.6m on the back of soaring international delivery costs and a strategic review of its stock.
In a statement today Charles Allen, Lord Allen of Kensington and chair of THG, said the consideration of the Apollo deal showed that bosses would give “due consideration to all potential options” to maximise shareholder value but they remained “fully confident in THG’s strategic direction”.
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