Nick Candy, the property tycoon who was recently involved in the the Partygate scandal and a bid to buy Chelsea FC, has abandoned his plans to buy Manchester-headquartered THG.
The move comes after it was first revealed that Candy Ventures was considering a £1.4bn move for the online retail and software giant last month. However, in a statement issued to the London Stock Exchange, it has been confirmed that Mr Candy, who is married to former Neighbours star Holly Valance, will not be making a formal offer.
The move comes after two investment companies behind a separate £2.07bn takeover bid for THG also pulled out earlier this morning. Under the London Stock Exchange's rules, the business had to state by June 16 whether an offer will be made or not.
Candy Ventures still has the right to make or participate in an offer for THG within the next six months. Following the announcements, shares in THG had fallen by almost 20% by 11am.
In a statement issued earlier this morning, THG said: "As confirmed in the company's preliminary FY 2021 results and Q1 2022 trading update on 21 April 2022, THG has received indicative proposals from numerous parties in recent months.
""Furthermore, as announced on 19 May 2022, an indicative non-binding proposal from a consortium led by Belerion Capital Group Limited and King Street Capital Management, L.P., had been rejected by the board of THG.
"All recent approaches for THG have been unsolicited, and in the unanimous opinion of the board, were unacceptable and significantly undervalued the company. After consulting with THG's major shareholders and taking advice from the company's advisors, the board has not considered it appropriate to provide due diligence access to any of these parties.
"In accordance with Rule 2.6(c) of the code, the board has determined that it is not appropriate to seek an extension to the deadline set out in the company's announcement dated 19 May 2022. While THG is clearly aware of the macro-economic challenges, the company continues to perform well, and in line with its own expectations."
