// THG activist investor Sparta Capital claims shareholders would dismiss Apollo takeover approach
// The group received a preliminary offer from the US private equity giant on Monday
A THG activist investor has said the group’s shareholders would reject a takeover approach from Apollo Global Management even at a significant premium.
On Monday, the group confirmed it had received a preliminary offer from the US private equity giant which now has until 15 May to make a formal proposal.
Sources told The Times that Sparta Capital, the group’s newest activist investor, believed shareholders would not back an offer for the company after it also received bids from Belerion Capital and property mogul Nick Candy.
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Sources said Apollo could explore a take-private deal that offered current investors shareholdings in the new business.
This would allow investors to benefit from operational improvements implemented away from the eyes of the public market.
THG has grown into a business with more than £2.2bn in sales since its £4bn debut on the stock market in 2020.
However, the group revealed this week its losses had more than doubled to £496m dragged down by a £275.4m non-cash impairment and £69.3m of non-recurring costs.
Founder and chief executive Matthew Moulding took to LinkedIn on Wednesday in a social media rant taking aim at institutional investors, stockbrokers, analysts and the media.
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