THG shares have jumped more than 40% today after it confirmed it has been approached by private equity giant Apollo Global Management over a possible deal.
THG said, in response to “recent press speculation”, it has received a “highly preliminary and non-binding indicative proposal from Apollo Global Management” to acquire the entirety of the group.
THG shares jumped 44% to 95p on the news – the shares’ highest level since June 2022.
The group made the announcement ahead of its annual results and first quarter trading statement tomorrow.
It added that there is no certainty that any firm offer will be made and declined to provide any details of the offer at this stage.
Under UK takeover rules Apollo now has until 15 May to make a formal approach.
THG has had a troubled time on the stock market since its £5.4bn listing in September 2020.
The group floated at 500p per share and rose past 800p per share by January 2021, but subsequently collapsed to just 31p per share by October 2022.
Two prospective bidders walked away from a potential £2bn deal for THG last summer when Belerion Capital and King Street Capital Management both declined to make a formal offer for the group following talks.
This weekend the Mail on Sunday reported an anonymous major shareholder has urged founder Matt Moulding to ‘start to rebuild confidence’ by ‘putting in a couple of results that beat targets’, and to create ‘some momentum before looking to release value’.