THG rejects 'unfunded' offer for Myprotein
By Frank Prenesti
Date: Wednesday 23 Apr 2025
(Sharecast News) - Online retailer THG on Wednesday rejected a "largely unfunded" bid for its Myprotein business worth up to £600m from AIM-listed acquisition vehicle Selkirk - led by its former chairman.
The "highly conditional" cash and share offer valued Myprotein at £400m - £600m on a cash-free, debt-free basis, the company said in a statement. Selkirk was set up by two early backers of THG, including its previous chairman Iain McDonald and shares in the firm were up almost 6% in London trade.
"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," it added.
Selkirk is a shell investment vehicle that floated last November, having been founded with funds from Kelso - an activist investor and major shareholder in THG.
McDonald stood down from THG after a shareholder rebellion against his re-election at the company's annual general meeting in 2023. The board backed him, but he stepped down in March 2024.
THG has been undergoing a restructure after pressure from activist investors over the decline in the price of its shares, which listed at 500p apiece in 2020.
THG, which is scheduled to post first quarter figures next Wednesday, said it had reduced debt and secured long-term banking facilities since spinning off its Ingenuity technology platform and distribution business at the start of the year.
Reporting by Frank Prenesti for Sharecast.com
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