A top shareholder at THG has joined a host of activist investors in calling for the removal of its chairman Charles Allen.
Ophorst Van Marwijk Kooy Vermogensbeheer, the Dutch investment firm and THG’s tenth-largest owner with a 1.89% stake, said it would be joining activist investor Kelso in voting against Allen’s re-election, The Times reported.
Kelso, the investment fund which owns 0.55%, has been pushing for Allen to be axed as it claims he is to blame for a “lack of action” on the ecommerce company’s strategy and its “disappointing” market valuation.
Allen, the former ITV chief executive, was appointed chair in 2022 and given the task of overhauling THG’s structure and improving corporate governance.
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Last month, Kelso said: “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.”
It added 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.
Ophorst said it would join the likes of Oliver Cookson, the founder of Myprotein who holds a 1.6% stake in THG, and Kelso in voting against the group’s chairman at its AGM on 24 June.
Chief executive and founder Matt Moulding has previously blamed the company’s weak share price on attacks from hedge funds, short sellers and negative coverage from the media.
This weekend, the firm’s outspoken founder hit out at its activist investors in the Times magazine. He said: “My dogs have got more shares and you’ve met them.”
In the interview Moulding also said he liked the idea of a stock exchange in Manchester which he likens to Dubai.
“The vibe in Manchester is really, really strong. Great businesses, lot of investment going in. It’s like the Dubai of years ago: bloody cranes everywhere.”
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