The boom comes shortly after reports surfaced that THG has now received a buyout offer from private equity firm Apollo.
Shares of THG plc (LON: THG), formerly known as “The Hut Group”, have seen unprecedented growth over the past 24 hours, rising at least 47% according to Bloomberg. reports, As of publication, however, the THG share price has retraced its steps a bit, but is still up 36% on the day and trading at 90GBX.
The development will be very welcome among investors who have had to endure a bumpy ride for so long. since being listed on London Stock Exchange In 2020, THG had varying issues ranging from governance concerns to the profitability of its Ingenuity arm and more. And as a result of the uncertainties, THG has lost more than 80% of its value since launch.
Why Are THG Shares Soaring?
However, by all indications, reports emerged shortly after the boom that THG has now received a buyout offer from private equity firm Apollo. But the beleaguered online retailer is not sure about completing the deal with the New York-based business, despite confirming a takeover bid from Apollo. Nonetheless, THG says Apollo has until May 15 to submit a more reasonable offer.
Meanwhile, the retailer has beaten several firms to acquire it during 2022. For example, businessman Nick Candy turned down an offer for THG last year. And, similarly, a competing consortium made up of Belairian Capital and King Street Capital Management also withdrew. However, the recent jump in its share price may spark renewed interest in the business.
Also remember that in early 2023, THG announced that it would be undertaking a comprehensive review of its entire business. At that time, it said that the major objective was to spin off some of its subsidiaries which were running at a loss. Furthermore, the company also said that the review will help it narrow down its e-commerce group which covers hundreds of different websites.
THG will publish its annual report on Tuesday, but it warned earlier that profits are expected to fall short of estimates.
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