THG shares jump after firm rejects 'unfunded' offer for Myprotein

(Sharecast News) - Shares in THG jumped on Wednesday after the online retailer rejected a "largely unfunded" bid for its Myprotein business worth up to £600m from AIM-listed acquisition vehicle Selkirk - led by its former chairman. The "highly conditional" cash and share offer valued Myprotein at £400m - £600m on a cash-free, debt-free basis, the company said in a statement. Selkirk was set up by two early backers of THG, including its previous chairman Iain McDonald.

"The board considered that the proposal fundamentally undervalued Myprotein and its prospects, and in addition carried significant execution complexity and risks, in particular the ability of Selkirk to raise sufficient funding," it added.

Selkirk is a shell investment vehicle that floated last November, having been founded with funds from Kelso - an activist investor and major shareholder in THG.

THG, which is scheduled to post first quarter figures next Wednesday, said it had reduced debt and secured long-term banking facilities since spinning off its Ingenuity technology platform and distribution business at the start of the year.

Reporting by Frank Prenesti for Sharecast.com