THG rejects unsolicited bid for Myprotein

Beauty and tech conglomerate THG has said it has rejected a wholly unsolicited and “largely unfunded” acquisition proposal for Myprotein, a bodybuilding supplement brand.

The offer, which was put forth by acquisition group Selkirk, amounted to between 400 and 600 million pounds and was to be paid via a combination of newly issued Selkirk shares, cash from a new equity and debt issuance.

According to THG, however, this was “largely unfunded and without appropriate detail on its source”. The board further determined that the proposal “fundamentally undervalued Myprotein” while also showing “significant executive complexity and risks”, particularly in regards to the funding, and thus was rejected.

Responding to THG’s decision, Selkirk said it “respectfully disagrees with the conclusions” and confirmed it was no longer in any form of discussions with THG, though it reserves the right to reconsider in the future. Selkirk had initially set out to bring Myprotein under its listed vehicle model, which it said both allows owners of assets to benefit from a market listing “whilst maintaining exposure to valuation upside”.

THG reaffirmed that since demerging its tech subsidiary, Ingenuity, in January, and following its refinancing, the company has “reduced its gross and net debt, secured long-term banking facilities and is focused on executing its growth and cash generation strategy”.