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<\/div>\nTHG\u2019s activist shareholder has ramped up its campaign calling for the company to affirm its break-up plans.<\/p>\n
Kelso Group has written to the company\u2019s board requesting a stock market statement containing its proposals relating to the de-merger of its three divisions.<\/p>\n
THG, which floated on the stock exchange in 2020 with a valuation of \u00a35bn, operates a beauty business, a nutrition arm and an ecommerce services platform, Ingenuity.<\/p>\n
However, its share price has since plummeted and the group is now worth around \u00a31bn.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\nIn Kelso\u2019 letter, seen by The Times, the investor said the de-merging the divisions would help to address \u201cthe inherent disparity between THG\u2019s share price and true value\u201d.<\/p>\n
The letter said: \u201cKelso continues to believe strongly that the three distinct businesses within THG are worth considerably more as separate businesses than the current market capitalisation of THG.<\/p>\n
\u201cThe stock market does not value diversified conglomerates, which THG is deemed to be. We do not propose to suggest the order of events, merely that it is made clear to shareholders that all options are being considered.<\/p>\n
\u201cSuch an announcement would, in our view, help to close the valuation gap and so enhance the ability to achieve the true value in any of the de-merger options.\u201d<\/p>\n
THG has yet to confirm whether it will split up the group\u2019s division\u2019s into separate entities.<\/p>\n
The company fueled speculation back in October when it was revealed it was considering a US listing for its MyProtein business.<\/p>\n
THG boss Matthew Moulding snapped up a 3.2% stake in Kelso Group last week, becoming the business\u2019 third-largest shareholder.<\/p>\n
In Kelso\u2019 letter, seen by The Times, the investor said the de-merging the divisions would help to address \u201cthe inherent disparity between THG\u2019s share price and true value\u201d.<\/p>\n
The letter said: \u201cKelso continues to believe strongly that the three distinct businesses within THG are worth considerably more as separate businesses than the current market capitalisation of THG.<\/p>\n
\u201cThe stock market does not value diversified conglomerates, which THG is deemed to be. We do not propose to suggest the order of events, merely that it is made clear to shareholders that all options are being considered.<\/p>\n
\u201cSuch an announcement would, in our view, help to close the valuation gap and so enhance the ability to achieve the true value in any of the de-merger options.\u201d<\/p>\n
THG has yet to confirm whether it will split up the group\u2019s division\u2019s into separate entities.<\/p>\n
The company fueled speculation back in October when it was revealed it was considering a US listing for its MyProtein business.<\/p>\n
THG boss Matthew Moulding snapped up a 3.2% stake in Kelso Group last week, becoming the business\u2019 third-largest shareholder.<\/p>\n