Frasers Group Increases Stake in THG to 10.9%
Deal News | Apr 02, 2025 | Business Cloud
Frasers Group has raised its stake in THG, an online retailer based in Manchester, to 10.9% from a previous 6.1%, bringing its total shareholding to 151.9 million shares. The move underscores a long-standing association between the two firms. This occurs as THG simultaneously undertakes a £90 million equity raise as part of a debt refinancing package, aimed at reducing overall debt and extending its commitment period to 2029. THG’s founder and CEO, Matt Moulding, has decided to invest up to £60 million of his own money in the form of a convertible loan, further solidifying his ownership stake. This follows his previous £50 million investment in the company's shares. THG recently demarcated its operations by demerging THG Ingenuity and maintaining THG Beauty and THG Nutrition, alongside rejoining the FTSE 250 Index. Additionally, Frasers Group has recently solidified its investment position in AO World and holds significant stakes in Boohoo Group.
Sectors
- Retail
- E-commerce
- Financial Services
Geography
- United Kingdom – Frasers Group and THG are both prominent companies based in the UK, making this geographical classification pertinent.
Industry
- Retail – The article focuses on Frasers Group's increased shareholding in THG, both of which operate within the Retail Industry.
- E-commerce – THG is an online retailer, making the E-commerce Industry relevant to the article.
- Financial Services – The financial maneuvers such as equity raises and debt refinancing in the article pertain to Financial Services.
Financials
- 10.9% – The percentage of THG's stake held by Frasers Group after its latest share purchase.
- £60 million – Amount committed by Matt Moulding in the THG equity raise, as a convertible loan into shares.
- £90 million – The total equity raise announced by THG for debt refinancing purposes.
- 31.6p – The current share price of THG.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Frasers Group | Investor | Company | A retail conglomerate known for its collection of sporting, luxury, and retail brands. |
| THG | Target Company | Company | An online retailer headquartered in Manchester, focused on beauty and nutrition sectors. |
| Matt Moulding | CEO and Founder | Person | CEO and founder of THG, committed personal funds towards the equity raise. |
| AO World | Investment | Company | An online electrical retailer in which Frasers Group has a 25% stake. |
| Boohoo Group | Investment | Company | Another online retailer where Frasers Group holds a significant share and is involved in a strategic dispute. |