THG raises over £95m to aid Ingenuity demerger
THG has raised more than £95m to help fund its planned demerger of its Ingenuity division.
The Manchester-headquartered group, which includes CityAM, confirmed on Thursday, 10 October, that it would press ahead with the demerger and revealed plans for a £75m fundraise led by boss Matthew Moulding.
The London-listed firm said the demerger of Ingenuity will ease the “simplification of THG’s business model, as a cash generative global consumer beauty and nutrition group, with an improved balance sheet, capex and cashflow profile”.
In a new statement to the London Stock Exchange, THG said it had raised £95.4m through a placing.
THG chief executive Matthew Moulding invested £10m while Mike Ashley’s Frasers Group also provided the same amount.
In the region of £50m was also contributed by existing long-term and institutional shareholders.
In a statement issued on Thursday, THG said: “The board believes that there is a significant opportunity to create value for shareholders by demerging Ingenuity into a separate private company which can focus on scaling brands digitally, navigating the complexities of acquiring new audiences, driving traffic, facilitating frictionless ecommerce and distributing products to consumers.”