Undervalued Offer Rejected by THG for Nutrition Brand

  • THG rejects £400m-£600m takeover bid for Myprotein
  • Offer considered ‘undervalued’ and ‘highly conditional’
  • Selkirk led by former THG director Iain McDonald
  • THG focuses on growth and cash flow generation after demerger

THG has rejected a takeover bid from Selkirk, an investment vehicle led by former director Iain McDonald, for its nutrition brand Myprotein. The offer valued Myprotein between £400m and £600m on a cash-free, debt-free basis, primarily structured through newly issued shares from Selkirk. THG considered the proposal undervalued and risky due to execution complexity and funding concerns. Since completing the demerger of its ecommerce and logistics arm, Ingenuity, in early 2025, the company has restructured into two divisions—THG Beauty and Nutrition—to reduce debt and focus on growth and cash flow generation.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about THG’s rejection of an unsolicited takeover bid from Selkirk for its Myprotein brand, the reasons behind the rejection, and background information on Selkirk and its founder Iain McDonald. It also includes relevant details about THG’s recent demerger and restructuring. However, there is a link to an unrelated article at the end which may lead readers away from the main topic.
Noise Level: 3
Noise Justification: The article provides relevant information about THG rejecting an unsolicited takeover bid for its Myprotein brand and discusses the reasons behind the rejection. It also gives some background on Selkirk and its founder Iain McDonald. However, it could provide more context and analysis of the situation and potential implications for both companies involved.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses an unsolicited takeover bid for THG’s Myprotein brand, which is related to financial topics such as valuation and potential funding sources. However, it does not mention any specific impact on financial markets or companies beyond the involved parties.
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 text and it’s not the main topic.

Reported publicly: www.retailgazette.co.uk