Moulding’s THG loses £1bn price tag as bidders walk

THE value of Matt Moulding’s online beauty empire THG has slumped below £1bn for the first time since its high-profile listing after two suitors abandoned their takeover pursuits.

Shares in the e-commerce group, once valued at more than £8bn, crashed by a quarter yesterday after property tycoon Nick Candy and a consortium led by THG board member Iain Mcdonald both ruled out possible bids.

Mr Candy said he did not intend to make an offer ahead of a “put up or shut up” deadline set for 5pm on Thursday. Belerion Capital, led by THG non-exec Mcdonald, and King Street Capital also said they had no plans to formalise an offer. The pair had previously tabled a £2bn bid for the retailer.

Shares in Mr Moulding’s company, previously known as The Hut Group, slumped by 29pc, leaving THG worth £927m by the end of the day.

THG was valued at £5.4bn when it listed in London in September 2020 in one of the UK’S biggest ever tech IPOS. Shares surged 30pc on the first day of trade and the company saw its value peak at over £8bn last year. However, THG’S share price has slumped over the last 12 months amid concerns about governance, transparency and strategy at the fast-growing company.

A recent global downturn for tech and e-commerce stocks, triggered by rising interest rates, has not helped.

The near 90pc slump in the share price over the last year is a blow for Mr Moulding, who co-founded the Manchester-based company in 2004 and is THG’S largest shareholder with a 22pc stake in the company. THG, which owns websites including Myprotein and

Lookfantastic, has been approached by “numerous parties” in recent months.

The company has dismissed offers as “unacceptable”, arguing they undervalued it. It did not open its books to any of the suitors. THG said: “After consulting with THG’S major shareholders and taking advice from the company’s advisers, the board has not considered it appropriate to provide due diligence access to any of these parties.”

UK takeover panel rules mean Belerion Capital and Candy Ventures are now forbidden to make an offer for THG for the next six months, unless another bidder emerges.

Shares closed at 74.4p, significantly lower than THG’S listing price of 500p.

Mr Moulding has blamed the share price decline on a “pretty aggressive short attack” orchestrated by the “media, investment banks, fund managers, hedge funds, etc”.

The company first disclosed the takeover approaches in April “to be cleansed of any rumours” – according to insiders at the time – following speculation that the fall in its share price could prompt it to go private.

Mr Moulding has a “golden share”, giving him the power to block takeover attempts. He previously said the float was a mistake. THG said yesterday it is “clearly aware” of wider economic challenges, but insisted it continues to trade well and in line with its expectations.