// THG ends discussions with Apollo about a possible takeover
// The group said there was “no longer any merit” in talks and said the firm had undervalued the group
THG has terminated talks with Apollo Global Management about a possible takeover as it believes the private equity firm has undervalued the group.
The Lookfantastic and Myprotein owner said on Friday there was “no longer any merit” in continuing to engage with the private equity firm.
“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,” the group said.
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Company shares soared more than 40% last month after it confirmed it had received a “highly preliminary” buyout proposal from Apollo.
Last year, the business rejected several takeover proposals, which founder and chief executive Matt Moulding said had all been “unacceptable” and had failed “to reflect the fair value of the group”.
Last month, the group revealed its full year operating losses had more than doubled to £495.6m, dragged down by a £275.4m non-cash impairment and £69.3m of non-recurring costs, such as stock provision, international delivery rerouting and administrative costs.
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