THG has rejected a takeover proposal from Selkirk to acquire its Myprotein brand as it “fundamentally undervalued” the brand and its future prospects.
Ecommerce giant THG said it received and rejected a “wholly unsolicited, largely unfunded, highly conditional and non-binding proposal” from Selkirk to snap up its Myprotein arm.
Selkirk’s bid valued Myprotein at between £400m and £600m on a cash-free, debt-free basis and THG said the majority of the consideration offered was in the form of newly issued Selkirk shares.
THG said that the remainder of the consideration would have been payable via cash from a new equity and debt issuance, which was “largely unfunded and without appropriate detail on its source”.
Selkirk was set up as a cash shell in October last year by former director Iain McDonald, who stepped down from the retailer following a shareholder revolt against his re-election at the company’s annual general meeting in 2023.
Selkirk is also backed by Kelso Group and Belerion Capital and was founded to “target both private and listed companies” within the consumer, technology and digital media sectors.
THG said in a statement to the London Stock Exchange: “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. On this basis, the proposal was unequivocally rejected by the board.”
The retailer said there have been no further developments or engagements with Selkirk since the bid was rejected.
THG said since the demerger of its Ingenuity business at the start of 2025, alongside recent refinancing, it has “reduced its gross and net debt, secured long-term banking facilities and is focused on executing its growth and cash generation strategy”.
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