23rd Apr 2025 11:43
(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.
Selkirk said it believed the acquisition could "achieve long term value accretion for Selkirk shareholders and at the same time would be advantageous to THG and its shareholders".
Prior to its London initial public offering 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.
Selkirk said the offer was rejected based on valuation, proposed structure of the offer, deliverability and a lack of certainty that a newly listed Myprotein would have "sufficient stock market trading liquidity".
"Whilst we respectfully disagree with the conclusions, we would like to thank the board of THG and their advisers for their time and efforts in considering our proposal," Selkirk said.
"Whilst Selkirk is no longer in any form of discussions with THG, we reserve the right to reconsider this in future should there be a change in circumstances."
Selkirk said it is "more convinced than ever" that its reverse takeover into a listed vehicle model is "a strong option for companies either seeking to IPO or for existing listed companies looking to realise value for a subsidiary".
It said it will continue to pursue its current pipeline of acquisition opportunities.
THG is due to release its full-year results and a first-quarter trading update next Wednesday.
Shares in THG were up 1.2% to 29.40 pence in London on Wednesday morning. Selkirk shares were untraded on Wednesday, last trading at 2.20p on Tuesday.
By Michael Hennessey, Alliance News reporter
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