THG has issued a statement this morning to say that it has ended discussions over a potential takeover by Apollo Global Management.
The North West group received a proposal from the private equity firm on April 17th to buy its entire share capital.
However, much like offers from other suitors, its valuation was below THG’s expectations.
“It has become clear to the Board, supported by shareholders representing a majority of THG’s issued share capital, that there is no longer any merit in continuing to engage with Apollo,” read the statement this morning.
“Consideration and rejection of the Indicative Proposal has been on a basis consistent with all previous offers for the Company, some a matter of public record, which were also rejected based upon inadequate valuations and the nature of those offer structures.”
THG said that, as a result, the Board had “terminated all discussions with Apollo.”
“THG’s Board, in accordance with its fiduciary obligations and as demonstrated with its recent engagement with Apollo, will always give due consideration to all potential options which provide the opportunity to maximise value to THG’s shareholders,” said Charles Allen, Lord Allen of Kensington, Chair of THG.
“The Board remains fully confident in THG’s strategic direction and long-term prospects as an independent company. As stated in our recent results, with a strong balance sheet and category leading positions within substantial global end markets that continue to benefit from long-term structural growth, we have confidence in our ability to deliver long-term value for shareholders and remain on track to be cashflow positive in 2024.”
