20th Oct 2021 11:08
(Alliance News) - THG PLC on Wednesday said that shares held by Chief Executive Matthew Moulding are no longer subject to a pledge and used as collateral for a loan.
The Manchester-based online retail platform - better known as the Hut Group - is looking to rebuild investor confidence, after a disastrous capital markets day early last week resulted in a hefty share price slide and left analysts with more questions than answers.
In a regulatory filing in September, THG said a loan was made by Barclays Bank PLC to FIC Shareco Ltd, an entity associated with Moulding. The loan was secured by about 180 million THG shares.
They included 28.4 million held by CEO Moulding, 9.8 million belonging to Jodie Moulding and 144.6 million attributed to FIC Shareco itself. The move did not reduce Moulding's holding in THG.
THG said on Wednesday: "The company today announces that on 19 October 2021, it received notification from Matthew & Jodie Moulding and FIC Shareco that the foregoing pledge of ordinary shares under the FIC Shareco loan facility had been released in full."
It means that no shares held by CEO Moulding are subject to any collateral or stock pledge.
"Matthew & Jodie Moulding and FIC Shareco also confirmed to the company that there was no disposal or other dealing in any ordinary shares, and nor will there be any such dealing, in connection with securing the release of this pledge," THG said.
The move follows THG announcing Monday that Moulding plans to give up his golden share, "in furtherance of good corporate governance".
The special share allows Moulding to veto any takeover bid for three years. It has been unpopular with investors and prevents THG from joining the FTSE 100 or FTSE 250 despite a market capitalisation of GBP3.99 billion. The stock was up 0.6% at 327.40 pence each in London on Wednesday morning.
THG would be shoe-in for inclusion in the mid-cap index, where only a handful of firms have a chunkier market value, including the likes of cybersecurity firm Darktrace PLC and budget carrier easyJet PLC.
Getting into the FTSE 100 would be more of a stretch. At GBP4.2 billion, Royal Mail PLC and ITV PLC, the smallest blue-chip stocks, still have slightly higher market values than THG.
By Eric Cunha; [email protected]
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