Hut Group in £1.6bn tie-up with Softbank

THE Hut Group (THG) last night agreed a £1.6bn tie-up with a Japanese conglomerate.

Under the deal, Softbank will become a top shareholder in the Manchester- based internet shopping business and use its e-commerce technology.

It values THG’s technology division, Ingenuity, at £4.5bn – just months after the entire company was floated on the stock market with the same valuation.

Last night THG boss Matt Moulding, who controls about 24pc of the firm, said Softbank’s investment would help the group ‘super accelerate’ its expansion plans.

At the same time, he announced the £180m takeover of Bentley Laboratories, a US beauty firm.

The deal with Softbank will see the Japanese firm – one of the world’s largest technology multinationals – initially pay £516m for a stake of about 9.5pc in THG, making it a top six shareholder at a stroke.

This is part of a £710m share placing that other big investors are also taking part in.

However, Softbank has secured further rights to invest another £1.1bn in technology division Ingenuity, which is being separated from THG, and will take a 19.9pc stake in that business too. THG will remain in overall control.

Ingenuity supplies technology, such as websites, logistics and online check- out systems, allowing brands to sell their products easily online.

Clients include Homebase, Gillette, Nintendo and Nestle, but the Softbank deal could open up more opportunities in Asia.

The separation of Ingenuity is expected to complete in 15 months, THG said, but Moulding, 49, said there were no plans to sell Ingenuity or other divisions completely and the separation was designed to create ‘an entity through which Softbank can invest’.