23rd Apr 2025 09:48
(Alliance News) - THG PLC on Wednesday confirmed it has received and rejected a bid for its Myprotein business worth up to GBP600 million from Selkirk Group PLC.
The Manchester-based e-commerce retailer of consumer beauty and nutrition products said the proposal was "wholly unsolicited, largely unfunded, highly conditional and non-binding".
Selkirk is a London-based acquisition vehicle focused on consumer, technology and digital media sectors in the UK.
Prior to the IPO in November, Selkirk was half owned by London-listed investor Kelso Group Holdings PLC and half by funds controlled by Belerion Capital Group. Kelso is an activist investor and major shareholder in THG.
Selkirk was set up by two early backers of THG, including previous Non-Executive Director Iain McDonald, PA reported.
THG said the offer ascribed a headline value of GBP400 million to GBP600 million to Myprotein on a cash-free, debt-free basis.
The majority of the consideration was offered in the form of newly issued Selkirk shares, with the remainder payable in cash from a new equity and debt issuance.
THG said the issuance was "largely unfunded" and did not have "appropriate detail on its source".
The company said it believes the proposal "fundamentally undervalued Myprotein and its prospects," and confirmed there has been no further engagement with Selkirk since the proposal was rejected.
THG is due to release its full-year results and a first-quarter trading update next Wednesday.
Shares in THG were up 2.1% to 29.66 pence in London on Wednesday morning. Selkirk shares were flat at 2.20 pence.
By Michael Hennessey, Alliance News reporter
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