The Hut Group (THG) has revealed it has terminated talks with Apollo Global Management about a possible takeover, claiming the group has been “undervalued” by the US buyout giant.
According to the parent company of Look Fantastic and My Protein, it was “no longer any merit” in having conversations with Apollo.
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“It has become clear to the board, supported by shareholders representing a majority of THG’s issued share capital, that there is no longer any merit in continuing to engage with Apollo,” THG said in a statement.
“Consideration and rejection of the Indicative Proposal have been on a basis consistent with all previous offers for the company, some a matter of public record, which was also rejected based upon inadequate valuations and the nature of those offer structures.”
However, the group added that the board had also “unanimously determined that it is not in the best interest of THG shareholders to seek an extension to the deadline”.
The news comes as last month, the group reported a £495.6 million loss in its full-year results, attributing the “challenging global environment”.
The online retailer claimed in the year ended 31 December 2022, its performance was impacted by the non-cash impairment of £275.4 million, in addition to certain non-recurring costs which THG “continues to reduce”.
However, as a result, days later, CEO Matthew Moulding called out institutional investors, stockbrokers, analysts and the media against “fake news” and frequent media intrusion.
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