Private equity firms said to be circling THG, shares surge
THG shares surged on Friday afternoon following a report that private equity firms Advent International, Leonard Green Partners and Apollo were circling the e-commerce company.
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According to markets blog Betaville, Advent is working with advisers from Goldman Sachs on its interest in THG alongside the company's founder, Matt Moulding.
It was understood that executives from Advent have visited THG's offices in Manchester in recent months. People following the situation told Betaville that dealmakers from Apollo were visiting the offices and one of the company's warehouses this week.
Advisers from Jefferies were said to be working for THG on fielding interest from the buyout firms. It was unclear on Friday whether the PE firms were working individually on the potential deal or as a consortium. The precise nature of the deal being discussed was also unclear, Betaville said.
There has been speculation about a takeover of THG since last year when founder Moulding suggested in an interview with GQ Magazine that he might be interested in quitting the stock market following the company's float.
Shares in the group have tumbled more than 80% since it listed in London in 2020, with Moulding pinning the blame on short-sellers.
Betaville said some people following the situation claimed Moulding was seeking backing from a private equity firm to back a leveraged buyout of THG. Others have heard gossip that THG has been looking at a series of complex corporate transactions, including the spinoff of a division, that might be of interest to a private equity investor.
The speculation was described as "uncooked", which is a term Betaville often uses to refer to market gossip.
At 1550 GMT, THG shares were up 16% at 132.20p.
A spokesperson for THG declined to comment.