Shares of Manchester-based consumer brands giant THG plc rose about 30% on Monday after it confirmed it received “a highly preliminary and non-binding indicative proposal” from New York-based private equity firm Apollo Global Management to buy THG.
THG went public at £5 a share in September 2020 and the stock rose to around £8. However, THG shares have since fallen about 90% to around 85p — slashing the firm’s stock market value to roughly £1.1 billion — following a disastrous presentation to investors and concerns over the company’s structure, transparency and governance.
THG said in a stock exchange statement: “The board of THG notes the recent press speculation regarding THG and confirms that it is currently in receipt of a highly preliminary and non-binding indicative proposal from Apollo Global Management Inc. on behalf of certain of its affiliated funds, to acquire the entire issued and to be issued share capital of THG.
“There can be no certainty that any firm offer will be made. A further announcement will be made if and when appropriate.
“In accordance with Rule 2.6(a) of the Code, Apollo is required, by not later than 5.00 p.m. (London time) on 15 May 2023, to do one of the following: (i) announce a firm intention to make an offer for THG in accordance with Rule 2.7 of the Code; or (ii) announce that it does not intend to make an offer for THG, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.
“This deadline can only be extended with the consent of the Panel on Takeovers and Mergers in accordance with Rule 2.6(c) of the Code.”