Kelso Criticizes THG’s Performance and Strategy

  • Kelso, an activist shareholder of THG, plans to vote against the reappointment of Lord Charles Allen as chairman
  • THG’s share price has plummeted since its September 2020 flotation despite positive annual results and Q1 trading statement
  • Kelso believes THG’s shares are trading at a significant discount to their sum-of-the-parts value
  • The company is worth about £1bn, down from a near £5bn valuation in 2020
  • CEO Matt Moulding blames hedge funds and negative media coverage for the weak share price

THG activist shareholder Kelso is set to vote against the reappointment of chairman Lord Charles Allen due to the company’s weak share price. The investor expressed disappointment in THG’s lack of progress in moving its listing to the premium segment of the London market and separating divisions. Kelso believes shares are trading at a significant discount, which would narrow if certain actions were taken. Despite positive annual results and Q1 trading statement, THG’s share price has plummeted from £5bn to £1bn since its 2020 flotation. CEO Matt Moulding blames hedge funds and negative media coverage for the weak performance.

Factuality Level: 7
Factuality Justification: The article provides relevant information about Kelso’s decision to vote against Lord Charles Allen’s reappointment as chair and discusses THG’s weak share price performance. It also mentions the investor’s concerns regarding the company’s lack of progress in moving its listing to the premium segment of the London market and separating some divisions. However, it includes some opinion from Kelso and Matt Moulding, which could be considered as personal perspectives rather than universally accepted facts.
Noise Level: 6
Noise Justification: The article provides some relevant information about a company’s share price performance and an activist investor’s dissatisfaction with the current leadership, but it also includes some irrelevant details such as the mention of JD Sports without providing any clear connection to the main topic. Additionally, it contains repetitive information by repeating that the share price is low and blaming the company for its performance.
Financial Relevance: Yes
Financial Markets Impacted: THG’s share price and corporate governance
Financial Rating Justification: The article discusses THG’s weak share price, activist shareholder’s concerns about the company’s performance, and their intention to vote against the reappointment of the chairman. This directly impacts THG’s financial situation and corporate governance, making it relevant to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailgazette.co.uk