The surge followed shortly after reports surfaced that THG has now received a buyout proposal from private equity firm Apollo.
Shares of THG Plc (LON: THG), formerly known as “The Hut Group,” have seen an unprecedented rise in the last 24 hours, surging by at least 47%, per a Bloomberg report. As of publication, however, THG stock price has slightly re-traced its steps but is still up 36% on the day and is trading at 90 GBX.
The development will be a much-welcome one among investors who have had to endure a bumpy ride for so long. Since listing on the London Stock Exchange in 2020, THG has had varying issues from governance concerns to the profitability of its Ingenuity arm and so on. And as a result of the uncertainties, THG has thus far, lost over 80% of the value it had when it launched.
Why Are THG Shares Surging?
From all indications, however, the surge followed shortly after reports surfaced that THG has now received a buyout proposal from private equity firm Apollo. But despite confirming the takeover bid from Apollo, the troubled online retailer is not yet certain about closing the deal with the New York-based business. Nonetheless, THG says Apollo has until May 15 to submit a more reasonable offer.
Meanwhile, the retailer has had many firms back down from acquiring it throughout 2022. For example, businessman Nick Candy declined to make an offer for THG last year. And, similarly, a competitor consortium made up of Belerion Capital and King Street Capital Management also backed out. However, the recent surge in its share price might create a renewed interest in the business.
Also recall, that in early 2023, THG announced that it would be reviewing its entire business on a broader scale. At the time, it said the major purpose was to fish out some of its subsidiaries that were running on loss. Furthermore, the company also said that the review will help it to trim down its e-commerce group which covers hundreds of separate websites.
THG will publish its annual report on Tuesday but had previously warned that profits are expected to be short of the projected values.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur.
Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.
Mayowa Adebajo
Source link
