THG chair Lord Charles Allen has retained his position with just 9.25% of shareholders voting against his re-election, despite dissent from a vocal activist investor.
Allen, the former CEO of ITV, joined the health and beauty retail group in 2022 to help stabilise the company’s sliding share price. His re-election comes despite Kelso Group, a minority shareholder with a 0.55% stake in the company, publicly opposing his reappointment as they voice concerns about what it claims is a lack of action on THG’s strategic direction.
Dutch investment firm Ophorst Van Marwijk Kooy Vermogensbeheer, holding a 1.89% stake, and Oliver Cookson, founder of THG’s Myprotein brand with a 1.6% stake, have also expressed their dissatisfaction.
THG’s shares, which debuted on the London Stock Exchange at 500p in 2020, have plummeted to 62p, leading to scrutiny over the company’s strategic decisions and multiple takeover attempts. Kelso, which began accumulating its stake last year, has advocated for the sale of THG’s nutrition business to unlock shareholder value.
Matthew Moulding, THG’s outspoken co-founder and CEO, has taken a defensive stance in response to the criticism. No stranger to speaking his mind, Moulding said in a LinkedIn post two months ago: “If we acted on all the advice, it would be as effective as drinking water from a fire hose. Most people sharing their views are unaware countless others are advising the complete opposite.”
Following Allen’s appointment, Moulding relinquished his “golden share” – a special right to block takeovers – leading to a board now predominantly comprised of independent directors.
It comes as THG unveiled a new multi-year partnership with Frasers Group this morning, which will see the online group integrate the Frasers Plus credit offer into its Ingenuity platform while the Mike Ashley-controlled business snaps up its luxury brands business, including Coggles.
As part of the partnership, THG will support Frasers with courier management services and re-platforming its Australian fulfilment and logistics operations. A curated range of Myprotein products are also set to be launched in-store at Sports Direct, including the Hyrox x Myprotein range.
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