THG has successfully raised £95.4 million, surpassing their initial target, to fund the demerger of their Ingenuity division.
- The shareholder-driven equity raise saw existing shareholders contributing approximately £50 million.
- Frasers Group confirmed a strategic investment of £10 million as part of their ongoing partnership with THG.
- THG announced plans for the Ingenuity division to operate independently, focusing on beauty and nutrition.
- According to CEO Matthew Moulding, this move aligns with THG’s strategy to maintain its status as a leading consumer brands group.
THG has demonstrated significant progress by raising £95.4 million through an equity raise, exceeding its original target of £75 million. This achievement was made possible via a share placing and subscription offer, which was both oversubscribed and upsized. Existing shareholders played a crucial role in this funding endeavour, contributing £50 million, with CEO Matthew Moulding leading the charge with a personal investment of £10 million.
The substantial funds raised are intended to provide Ingenuity with adequate medium-term capital as it nears positive cash flow while operating independently. This demerger is set to strengthen Ingenuity’s position as a standalone entity focused on beauty and nutrition services.
In parallel with the funding achievement, Frasers Group has confirmed a strategic investment of £10 million in THG. This investment is a facet of a strategic partnership that was initially announced in June. Such partnerships underscore the mutual interest and collaborative potential between the two business entities.
The announcement on 17 September marked THG’s concrete steps towards the demerger of its Ingenuity division. Post-demerger, the standalone Ingenuity would encompass THG Beauty and THG Nutrition, two of the group’s pivotal branches.
Matthew Moulding, THG’s CEO, has emphasised that this move is part of their broader strategy to split THG Ingenuity into a private company with support from major shareholders. Concurrently, THG PLC aims to remain listed as a key player in the consumer brands sector, with plans to transfer to the ESCC progressing well.
The strategic steps taken by THG highlight a robust plan to restructure and refocus its business divisions.
