In a turn of luck for the beauty owner, its share price swelled 24.5%, and has attracted higher bidders
THG owns beauty brands ESPA and Perricone MD
THG is seeing its shares soar after the Manchester, UK-based group rebuffed a ￡2.1bn buyout proposal.
Its share price jumped 24.5% last week and remained buoyant when stocks reopened this morning.
The “highly preliminary” deal, tabled by two investment groups, King Street Capital and Belerion Capital, has also attracted attention from other potential suitors, including Nick Candy, the British property tycoon and owner of Candy Ventures.
Founder Matthew Moulding, however, said that he would back a ￡3bn agreement for his e-commerce business, which owns beauty brands ESPA, Lookfantastic and Illamasqua.
Moulding, who still holds onto his ‘golden share’, according to reports, wants to remain at the helm of the company if it does go private.
In contrast to THG’s new found prosperity, the company’s difficult 20 months can be seen in Moulding’s overall wealth.
The British businessman dropped 78 places on the The Sunday Times Rich List down to 230.
Unsurprisingly, this was due to a fall in his net worth from ￡1.4bn to ￡700m.
THG’s problems, however, are not behind them.
The company’s new Chairman, Lord Charles Allen, who replaced Moulding in March, said in its annual report that THG’s Board will face “detailed scrutiny” for the remainder of the year.
He said that the Board’s composition will remain his “prime focus” to ensure a “suitably equipped” leadership team is in place.