Thg Share Discussion Threads

[havinthelasttoast] 07/12/2023 09:07

How do you know what they have done ? They know all the shareholders personally. You don’t do that publicly. That’s unprofessional and weak.

Anyway it’s better than nothing. Let’s hope it helps :)

[hooded claw] 07/12/2023 08:59

For me if KLSO were the "activist" shareholder they would have asked all shareholders of THG to contact them if they want KLSO to speak for them on this issue. I bet they could get a decent chunk of the 35% that MM labelled "fast money".

They haven't done that so at the moment it is still 0.55% of something wanting to be heard.

[havinthelasttoast] 07/12/2023 08:37

They need a big win.

Their gains on NCC has been wiped out by the the works plc. They have invested in another illiquid stock also. They need a bagger or two to get inflow of money. Good to see them desperate and THG looks the best opportunity for them but they couldn’t have it all in one stock after this amount of time. It looked silly. However they might as well be all in THG because if it doesn’t deliver Kelso are finished.

[havinthelasttoast] 07/12/2023 08:36

Maybe. Maybe they need a loan from me.

It is miserable when I have 2m shares and derivatives and they only have 7m or so despite them being backed by billions of net worth. If it’s such a bargain go balls deep like me lol

[hooded claw] 07/12/2023 08:32

"I take a view that they are punching above their weight."

I agree ... my point is they could do a LOT more to increase that weight.

[havinthelasttoast] 07/12/2023 08:31

Like this comment on LSE. Could be true for me.

Now you know why Moulding and Monro bought their stakes in Kelso and to me it does read like a Pacman defence.

We weren't aware of the Kelso letter at the end of Octiber urging strategy update and demerger and I personally think John Goold at Kelso has been canvassing a few and word got back to MM.

Few can argue with the undervalue since there have not been any appreciable rises in the share price under the present Boards stewardship and nowhere near back to previous Bids. Two for Nutrition not made public.

It looks like a yellow card before they start using the Company Act levers that they have at their disposal or they facilitate a larger Activist to come on board also (Elliot Advisors) or hostile takeover.

Again the RNS highlighting the massive undervaluation.

That is just my thoughts.

[nobbyknome1] 07/12/2023 08:16

Matt playing a blinder here, took some Kelso himself. A play is in hand.

[havinthelasttoast] 07/12/2023 08:12

Whilst previously I would agree with you claw, we could not get an article in the times and release an RNS or canvass large shareholders.

I take a view that they are punching above their weight.

[hooded claw] 07/12/2023 08:11

Kelso trying to throw its 0.55% weight around ... all seems pointless to me.

They are not even activists as they would have asked for other shareholders to join in to get the percentage higher. Need at least 10% to have any voice IMHO

[havinthelasttoast] 07/12/2023 08:08

In the future when a share is seriously undervalued not because of the company itself they will call it “the moulding factor”

[leoneobull] 07/12/2023 07:56

Kelso are just repeating what PIs have been saying for 3 years...sp destruction requires SOTP value unlocking.

[havinthelasttoast] 07/12/2023 07:26

Today 07:07

RNS Number : 0135W
Kelso Group Holdings PLC
07 December 2023
Kelso Group Holdings Plc ("Kelso" or the "Company")

Update on THG Investment

Kelso, the main market listed investment company and an investor in THG Plc ("THG"), today released the following statement.

Over recent weeks, the market has seen a growing and concerning trend of high-quality smaller UK companies exiting the London Stock Exchange ("LSE"). As such, more than ever Kelso urges boards and management teams to do everything they can to recognise and address vulnerabilities, and to maximise shareholder value.

On 30 October 2023, Kelso wrote to the Board of Directors at THG outlining its conviction in the substantial value creation opportunity at the company. Kelso firmly believes that THG's sum of the parts is worth significantly more than the Company's current market capitalisation, and specifically that a demerger announcement is the most compelling route to resolving the inherent disparity between THG's share price and its fundamental fair value. As Kelso has stated previously, many of the larger global peers for THG's Nutrition business trade on over 3-7x sales valuation multiples, while several of the larger global Beauty brands trade on 3-5x sales. By comparison, THG trades on around 0.5x sales. Kelso believes that the UK stock market will not ascribe a sum of the parts valuation to THG, until the company publicly confirms its intention to demerge its businesses. Such a demerger would allow each part of the business better access to capital to deliver further growth and build upon their market leading positions. There are several good examples of such demerger confirmations on the LSE, including Whitbread's demerger of Costa Coffee in April 2018 and GSK's Consumer Healthcare business in July 2021. Kelso remains agnostic as to how THG chooses to prosecute the demerger strategy.

John Goold, CEO of Kelso commented:

"We believe that the market would respond well to a formal confirmation of a demerger of THG. Whilst there are a multitude of reasons why the valuation of many smaller companies remains at very low levels, companies need to ensure that they have clear strategies in place to maximise shareholder value and to avoid unwanted predatory interest at the wrong levels. We hope that THG adopts our beliefs and announces a strategy for the demerger of its three stand-out global businesses without further delay".

Letter to THG plc

30 October 2023

Dear Board of Directors of THG Plc ("THG")

I write to you today as CEO of Kelso Group Holdings Plc to request that you work actively and rapidly towards addressing the inherent disparity between THG's share price and true value. Specifically, we request you make an announcement, as detailed below, and conduct a shareholder review. I assume you feel the same frustration as shareholders and that you are keen to solve this issue rapidly. Kelso remains a supportive but increasingly frustrated shareholder.

Kelso continues to believe strongly that the three distinct businesses within THG are worth considerably more, as separate businesses, than the current market capitalisation of THG. Liberum continues to highlight this disparity in their research. Some of the world's largest companies operate in the beauty and F&B sectors and typically, due to the quality of their business, brand value and focus, trade on relatively high multiples. The stock market does not value diversified conglomerates, which THG is deemed to be. We are not aware of any global companies that operate in both the beauty and F&B sectors. Many of these companies have historically been extremely acquisitive and in particular F&B companies are growing their presence in nutritional and wellness.

Kelso believes that the stock market will not ascribe a sum of the parts valuation to THG until the board confirms, by way of an RNS announcement, that its stated intention is to demerge the three divisions. Demerging the businesses could be done via full, majority or minority disposals of each division, most likely sequentially (we refer to any of these options as the "demerger"). We do not propose to suggest the order of events, merely that it is made clear to shareholders that all options are being considered. Such an announcement would, in our view, help to close the valuation gap and so enhance the ability to achieve the true value in any of the demerger options. Our confidence in this approach was recently enhanced by the positive share price move resulting from the CEO Matthew Moulding's strategic optionality comments in the Q&A part of the Q3 trading statement. However, we believe comments alone do not go far enough, and that the market wants to hear formal confirmation of, and articulation of possibilities regarding the company's intention to demerge. THG's real strategic optionality is enhanced as the share price increases.

Furthermore, whilst the share price remains low, THG is susceptible to an opportunistic bid; this is a real risk without a supportive shareholder base. Another benefit is that such a statement will significantly reduce your share price volatility making THG a more attractive investment for traditional long only funds and stop hedge funds profiting from and driving the current volatility.

Liberum's price target is 225p per share but only when a sum of the parts valuation becomes relevant. We think that more analysts would consider increasing their target prices if a formal demerger intention announcement was made. We also believe that such a demerger would be highly advantageous to the valuation of Ingenuity in turning its internal revenues to external ones, enhancing its ability to win third party contracts.

In summary, we believe it would be extremely helpful to THG's valuation if it publicly included the following on an RNS announcement:

1. The board's intention is to demerge the businesses in the medium term.

2. The demerger could be by way of separate listings with THG retaining majority or minority ongoing control, or outright disposals potentially with THG retaining an interest.

3. The board is open to strategic partnerships as part of this strategy.

We acknowledge fully that Kelso is a small shareholder, but we believe that many other shareholders, both small and large, share our view, having become increasingly frustrated and impatient. We urge you to engage an independent third party now to canvas shareholders for their views, so you can understand which actions your shareholders wish their board to act on. We believe a demerger announcement will be one of their principal requirements.

Yours sincerely

John Goold, CEO

[havinthelasttoast] 07/12/2023 07:20

Great results by frasers today showing retail is going well.

Well run company, shows what is possible with THG margin and turnover when run correctly.

[london07] 07/12/2023 07:17

Imagine being out of THG or short, when this obvious value gap is unlocked to 225p 🤣🤣

[havinthelasttoast] 07/12/2023 07:10

Another U.K. company going private today with a 40 percent premium.

This thing be unlikely to last to AGM in June. Things are improving. A white knight should come and help Matt out. Tick tock.

They are calling for independent 3rd party to canvass shareholders. This will annoy Matt as he is controlling the narrative and won’t let anyone else speak at conference calls, I don’t think he has the support he thinks he has. I think that buying of 6 percent of Kelso has made Kelso take action. War has broke out. Only good for us.

[hades1] 07/12/2023 06:57

All helps.
Let’s hope others join the call.
Thanks for posting

[havinthelasttoast] 07/12/2023 06:51

Todays times

THG’s activist investor Kelso Group reaffirms call for break-up
December 7 2023, The Times
THG’s activist investor has stepped up its campaign by urging the company to confirm break-up plans.
Kelso Group has written to the business’s board calling for a stock market statement outlining proposals for a demerger of its three divisions.
232;THG operates a beauty business, a nutrition business, and an e-commerce services platform, Ingenuity. The company first listed on the stock exchange in September 2020 with a valuation of about £5 billion, but its share price has since declined and the company is now worth around £1 billion.

In its letter, seen by the Times, Kelso Group said announcing a split-up of the divisions would help to address “the inherent disparity between THG’s share price and true value”.

The letter said: “Kelso continues to believe strongly that the three distinct businesses within THG are worth considerably more as separate businesses than the current market capitalisation of THG.

“The stock market does not value diversified conglomerates, which THG is deemed to be. We do not propose to suggest the order of events, merely that it is made clear to shareholders that all options are being considered. Such an announcement would, in our view, help to close the valuation gap and so enhance the ability to achieve the true value in any of the demerger options.”̷2;
Kelso has been building its stake in THG since January and now has exposure to about 0.55 per cent of the group’s share capital. The investment firm has argued that a demerger of THG could help to lift its share price to 225p and achieve a market valuation of around £3 billion. Analysts at Liberum have said THG could achieve this target price if the market valued the divisions by comparison to peers in their respective industries.

Matthew Moulding, the founder and chief executive of THG, caught Kelso off-guard last week with the purchase of a 3.2 per cent stake in the investment firm. He is now Kelso’s third-largest shareholder after John Goold, the company’s chief executive, and Jamie Brooke, its chief investment officer. Moulding has not disclosed his motivation for buying a stake in THG’s activist investor but the move is reminiscent of so-called “Pac-Man defence” strategies sometimes used to counter possible hostile takeovers.

THG became a takeover target this year when Apollo, the US private equity firm, expressed an interest in acquiring the company but the two sides were unable to agree a deal. In the months since, THG has itself made a number of acquisitions. The company bought City AM, the free business newspaper, for £1.5 million in July and announced this week that it would acquire the skincare brand Biossance for up to $20 million. Biossance is a global brand which stocks products in Sephora, Harrods, Space NK and Selfridges, with revenues of about $300 million.

In its letter to THG, Kelso said: “We urge you to engage an independent third party now to canvas shareholders for their views, so you can understand which actions your shareholders with their board to act on.”

[havinthelasttoast] 07/12/2023 06:42

I hear you!

I got caught with my pants down on this one too and had to trade it to get myself into this position.

Good luck to us.

[leoneobull] 07/12/2023 05:58

Yes, toasty, correct...but I didn't have capital to average down in 2 accounts. It was easier to build trading stakes in a SIPP. These have been highly profitable usually due to bid speculation and trading fluctuations. Anybody invested in THG from late 2021 or early 22 will have higher averages. Don't have massive confidence in MM TBH..rants on LI but he kept missing targets. THG will deliver in end though. Biossance purchase vest but of business in a very long time by MM.

[havinthelasttoast] 06/12/2023 19:16

Anyway we are on the same side. So live and let live.

You shouldn’t lie to yourself. That’s like saying I bought a load of thg at 30p in one account and sold at a quid and made 50k. On another account I’ve got 100k cost price at 5 quid average.

That’s just lying to yourself. I’ve got three accounts and I take my average for all and if I make a sale then it either takes up or down my average.

Good luck to you anyway.

[havinthelasttoast] 06/12/2023 19:13

Oh right so you don’t average it.

You choose to ignore the big average and pretend you have made profits elsewhere.

What a total mug you are ya daft bull ya hahahaha

[leoneobull] 06/12/2023 18:25

I have made decent profits trading boo thanks Toasty...though I'm stuck with 20ks at 78p still too. I prefer trading THG and BOO at lowly prices as I seem to do quite well. I wish the same could be said for my account with THG at av. 1.50 and the other at average 2 pounds. Long and impatient

[havinthelasttoast] 06/12/2023 17:50

Ffs bull. You are 20 percent off your lows. Even a dog has a good day. Next you be saying you are in profit.

Let’s hope you bank your not so big loss lol

[leoneobull] 06/12/2023 17:40

I wonder if JPM like BOO?