(Reuters) - British online retailer The Hut Group's founder and CEO Matthew Moulding is to surrender his "golden share" in the company in an attempt to restore trust in the business after the share price slumped this week, Sky News reported on Saturday.
THG's shares tumbled 35% on Tuesday after a badly received investor presentation. THG said no material new information was disclosed during the presentation and it knew of "no notifiable reason" for the share price drop.
Moulding's founder's share in the company gives him the right to veto a hostile takeover of the Manchester-based group.
THG, which went public in a bumper initial public offering in September last year, also plans to move its listing to the premium segment of the London Stock Exchange in 2022, the Sky News report said https:// adding that the announcement can be expected next week.
Currently, the company is listed on the standard segment of the LSE as the founder retained enhanced shareholding rights, thus barring it from a premium listing and access to the FTSE indices.
THG did not immediately respond to Reuters requests for comment.
Shares in THG, which also plans to separate and list its beauty business next year, had already fallen by a third in the four weeks prior to this week amid reports that short-sellers were targeting the company.