Leahy cashes in on Hut flotation

EX TESCO MAN NETS £100m FROM LAUNCH

FORMER Tesco boss Sir Terry Leahy enjoyed a £100million bonanza yesterday after online firm The Hut Group made a storming stock market debut.

The retail veteran sold £16.8m worth of shares in the Manchester-based business.

And a 25% surge in its share price saw the paper value of Sir Terry’s remaining stake rocket by nearly £17m to £85m.

He was among backers who celebrated a bumper payday from The Hut Group’s £5.4billion stock market flotation.

The value of founder Matthew Moulding’s 17% stake leapt to £1.1bn.

The Hut Group was founded in 2004 by Moulding, 48, who grew up in Colne, Lancs.

He had been expelled from college for r playing truant, then started out selling g CDs online before running websites for r other retailers.

The Hut Group now owns make-up p brands, MyProtein and online businesses such as LookFantastic. Yesterday’s share price surge saw its stock market value overtake high street stalwarts including Morrisons and Sainsbury’s.

However, the firm has faced questions over how it is governed, with Moulding remaining as joint chairman and chief executive.

The firm’s unusual structure means the group will not qualify to enter the FTSE 100. The £920m raised by the firm from the listing will be used to cut its ballooning debt.

Other big winners from the sale included private equity company KKR, an early investor, which bagged £448m. And 500 of the group’s 7,00 7,000 staff, including wa warehouse workers, were als also quids in after being gif gifted shares for their wo work at the business.

FORTUNE Sir Terry Leahy