THG Turns Down Selkirk's Offer for Myprotein Brand
(Reuters) -British e-commerce firm THG said on Wednesday it had rejected an unsolicited proposal from acquisition vehicle Selkirk to buy its sports nutrition brand Myprotein.
The company called the proposal, which valued Myprotein between 400 million pounds and 600 million pounds ($532-$799 million), "largely unfunded, highly conditional and non-binding."
WHY IT MATTERS
THG has been shoring up its balance sheet and refinancing its debt as it looks to rebound after several profit warnings due to a cost-of-living crisis in Britain.
It is banking on its cash-generative nutrition and beauty businesses to drive performance.
CONTEXT
THG, which owns brands including Lookfantastic, Cult Beauty, and Exante, said in October it would demerge its technology services arm Ingenuity into a standalone independent private entity. The demerger was completed in January.
Myprotein offers products such as protein powders, supplements, healthy snacks, and activewear.
KEY QUOTE
The board considered that the proposal fundamentally undervalued Myprotein and its prospects, and in addition carried significant execution complexity and risks, in particular the ability of Selkirk to raise sufficient funding, the company said.
BY THE NUMBERS
In January, the company forecast 2024 core earnings to be in line with market consensus of 110.4-120.5 million pounds.
MARKET REACTION
THG's shares rose 3.3% to 30.02 pence by 0730 GMT.
($1 = 0.7514 pounds)
(Reporting by Shashwat Awasthi; Editing by Saumyadeb Chakrabarty)
