Investment firms decide not to make £2.07bn offer for THG

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Two investment firms behind a £2.07bn takeover bid for THG have confirmed they will not make a formal offer for the company.

Belerion Capital and King Street Capital Management made the announcement after first revealing the unsolicited offer of 170p per share last month.

Under London Stock Exchange rules, companies had to declare by June 16 whether or not an offer will be made.

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However, Belerion Capital and King Street Capital Management still have the right to make or participate in an offer for THG within the next six months.

Belerion co-founder and chief investment officer Iain McDonald is a non-executive director of THG.

Property tycoon Nick Candy, who is considering making an offer to buy THG in a deal worth £1.4billion, has yet to officially announce whether he would make an offer or not.

A statement from THG said: “As confirmed in the Company’s Preliminary Fiscal 2021 Results and First Quarter 2022 Business Update on April 21, 2022, THG has received indicative proposals from numerous parties in recent months.

“Furthermore, as announced on May 19, 2022, a non-binding indicative proposal from a consortium led by Belerion Capital Group Limited and King Street Capital Management, LP, had been rejected by THG’s Board of Directors.

“All recent approaches to THG have been unsolicited and, in the unanimous opinion of the board, were unacceptable and significantly undervalued the business.

“After consulting with major shareholders of THG and taking advice from the Company’s advisors, the Board of Directors has not deemed it appropriate to provide due diligence access to any of these parties.

“Pursuant to Rule 2.6(c) of the Code, the Board has determined that it is not appropriate to seek an extension to the time limit set out in the Company’s announcement dated May 19, 2022.

“While THG is clearly aware of the macro-economic issues, the company continues to perform well, and in line with its own expectations.

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