Blackrock funds ‘selling 55m shares in THG’

The Hut Group CEO Matthew Moulding

Funds managed by Blackrock are selling about 55 million shares in troubled Manchester-based e-commerce, beauty and nutrition giant THG plc, Reuters reported, citing a bookrunner.

Blackrock is the biggest institutional shareholder of THG — formerly called The Hut Group — after the company founder Matthew Moulding’s 14.19% holding.

THG went public at £5 a share in September 2020 and the stock rose to almost £8.

However, it has now fallen to around £2.17 amid investor concerns over its transparency and governance.

THG published a third quarter trading statement on October 26 showing its Q3 revenue rose 38% to £507.8 million and outlining its efforts to improve governance amid plans to move its listing to the premium segment of the London Stock Exchange (LSE).

The firm announced the appointment of Andreas Hansson, a managing director from investor SoftBank, to its board, and the start of a process to appoint an independent non-executive chair.

On October 26, THG also announced growth figures for its Ingenuity technology unit — which it plans to spin off — as it sought to repair its image among investors following a badly-received presentation to investors on Ingenuity earlier in October.

THG is currently listed on the standard segment of the LSE and the premium listing it now seeks would demand stricter corporate governance standards.

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.