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THG chair faces activist opposition at AGM vote

Published 21/05/2024, 09:27
THG chair faces activist opposition at AGM vote
UK100
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THG
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Proactive Investors - Activist investor Kelso (LON:KLSO) said it is going to vote to get rid of THG PLC's (LON:THG) chair at the upcoming annual meeting due to a "lack of action and clarity" on corporate matters.

Kelso, which owns 5.5 million shares in the beauty, nutrition and online retail group, continued its push for THG to move to London's premium list from the standard list and provide clarification on its future structure.

"Whilst major strategic and structural issues remain unaddressed, the poor share price cannot be blamed on the London Stock Exchange. As a result of the lack of progress we plan to vote against the chair at the upcoming AGM."

Kelso said it is "firmly convinced that the sum of the parts valuation of THG continues to significantly exceed the current market capitalisation" and that this discount would "narrow significantly" in the event of a move to a premium listing, which would enable the shares to join the FTSE indices.

Clarification of the group's future structure would "avoid the current conglomerate discount", it added.

It said it was making the statement in "the spirit of shareholder democracy ... to encourage shareholder debate".

Kelso is led by CEO John Goold, formerly boss of small cap broker Zeus; chairman Sir Nigel Knowles, a City lawyer who is also CEO at DWF and ex of DLA Piper; and chief investment officer Jamie Brooke, who was formerly fund manager for the Hanover Catalyst Fund.

The activist declared its stake in THG last year.

Read more on Proactive Investors UK

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