THG’s activist shareholder Kelso is to vote against the reappointment of Lord Charles Allen as chair in the latest drive to address the group’s weak share price.
The investor told the stock market on Tuesday that it was “disappointed” by THG’s lack of progress in moving its listing to the premium segment of the London market and in separating some of its divisions.
The shareholder said it believed THG’s shares were trading at a “significant discount” to the sum-of-the-parts value and that the discount would “narrow significantly” if it took certain actions.
“It is disappointing that the THG share price remains below 80p despite the recent positive annual results and Q1 trading statement,” it told the market.
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Kelso said that due to the “lack of action and clarity on these matters”, it would vote against the re-election of the company’s chairman, “whom we believe is ultimately responsible and should be held accountable for leading THG’s strategy”, at its annual general meeting on June 24.
Allen, the former ITV chief executive, was appointed chair in 2022 and given the task of overhauling THG’s structure and improving corporate governance.
Kelso said: “In the spirit of shareholder democracy, we are making this statement to encourage shareholder debate.”
THG floated on the stock exchange in September 2020 with a valuation of near £5bn, but its share price has plummeted 90% since and the company is now worth about £1bn.
Chief executive Matt Moulding has blamed the company’s weak share price on attacks from hedge funds, short sellers and negative coverage from the media.
However, Kelso said the group was to blame for the stock market performance: “While major strategic and structural issues remain unaddressed, the poor share price cannot be blamed on the London Stock Exchange.”
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