Kelso Group ups stake in THG and calls for spinoff of nutrition business
The activist investor Kelso Group has upped its stake in THG and called on the online retail specialist to consider separating out its Myprotein nutrition business.
Kelso, which first took a stake in struggling THG in January, said it now had 8m shares, through a mix of ordinary shares and contracts for differences. This represents about 0.55% of THG’s total share capital.
The investment group said its increased stake in THG, formerly known as The Hut Group, was prompted by its belief in the “significant intrinsic value” of Myprotein, which could make the nutrition business a potential takeover target. Shares in THG rose 6% on Friday morning after the announcement.
In a statement, Kelso said: “THG’s nutritional business is likely ultimately to end up being owned by one of the large global food and beverage companies all of which have already begun investing in nutritional, wellness and healthier assets to improve the mix of their sales between nutrition and chocolate or sugar products.” The investment group suggested potential buyers could include Nestlé, Coca-Cola, PepsiCo and the Cadbury’s owner, Mondelēz International.
Kelso, which was founded in 2022 by the former boss of Zeus Capital John Goold, raised £3m in January from about 20 UK entrepreneurs to identify and unlock value in the UK stock market. Its biggest independent shareholder is the spreadbetting firm Spreadex.
The investment group said THG’s founder and chief executive, Matt Moulding, had “consistently tried to explain the true value of the nutritional business” and any potential takeover deal would need to recognise the worth of Myprotein.
THG’s stock had soared by 45% on Monday after news of a buyout approach from the private equity group Apollo. But the
Read more on theguardian.com
