Myprotein: THG Rejects Selkirk's Unsolicited £600m Bid

THG, an online retail giant, has firmly rejected a £400-600 million bid for its prominent asset, Myprotein, from Selkirk Group PLC, a company led by former THG director Iain McDonald. Described by THG as unsolicited, largely unfunded, and highly conditional, the proposal sparked interest due to McDonald's previously lauded contributions to THG. Despite the dismissal, the connection between McDonald and THG CEO Matt Moulding adds a complex layer to the situation. Myprotein, an integral part of THG Nutrition which reported a 7.5% drop in revenue in the first half of 2024, is considered potentially undervalued with its estimated worth varying from £775 million to an optimistic £1.5 billion in acquisition scenarios. THG cited significant risks and valuation concerns in rejecting the bid, as most consideration was to be in newly issued Selkirk shares. Selkirk, focusing on acquiring undervalued digital-centric businesses, insists on Myprotein’s growth potential despite market undervaluation. Rumors suggest further acquisition interest could emerge.