A £2.07bn takeover bid from two investment companies has been rejected by THG as a offer emerged from a venture capital firm controlled by property tycoon Nick Candy.
The Manchester-headquartered group has confirmed it had received an unsolicited offer of 170p per share from Belerion Capital and King Street Capital Management.
In a statement issued to the London Stock Exchange, THG said the “significantly undervalued the company and its future prospects” and was “unanimously rejected”.
THG’s shares closed at 116p on Thursday, a drop of 4% from the start of the day.
Under the London Stock Exchange’s rules, Belerion Capital and King Street Capital Management must state by June 16 whether an offer will be made or not.
Belerion’s co-founder and chief investment officer Iain McDonald is a non-executive director of THG.
A THG statement said: “The board of THG notes the recent press speculation and confirms that it received a third unsolicited, highly preliminary and indicative non-binding proposal of 170 pence per share from Belerion Capital Group Limited, together with King Street Capital Management, L.P. to acquire the entire issued and to be issued share capital of THG.
“The board of THG considered the proposal, together with its financial and legal advisers, and concluded that it significantly undervalued the company and its future prospects, and accordingly unanimously rejected the proposal.
“There can be no certainty that any firm offer will be made, nor as to the terms of any such offer. A further announcement will be made if and when appropriate.”
In a separate move, it was revealed that property tycoon Nick Candy is weighing up making an offer to buy THG in a deal worth £1.4bn.
Mr Candy, who is married to former Neighbours actor Holly Vallance, also has until June 16 to make a formal bid or walk away.
A Candy Ventures statement said: “Following the recent press speculation regarding THG plc, Candy Ventures Sarl confirms that it is in the very early stages of considering a possible offer for the entire issued and to be issued share capital of the company.
“There can be no certainty that any offer will be made, nor as to the terms of any such offer.
“In accordance with Rule 2.6(a) of the Code, Candy Ventures must, by not later than 5pm on 16 June 2022, either announce a firm intention to make an offer for the company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.
“This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.
“A further announcement will be made in due course.”
Mr Candy was recently linked with a bid to buy Chelsea FC.