THG: Soars on new placing, M&A seen as next stop
11/05/2021 10:08
** Shares in THG THG.L jump 12% after the e-commerce
retailer said it raised over $1 billion in new equity, including
$730 million from Japan's SoftBank Group 9984.T
** The deal gives Softbank a stake of just under 10% in the
British company, with an option to invest a further $1.6 billion
into THG's Ingenuity business urn:newsml:reuters.com:*:nL4N2MY1HU
** Jefferies points out the new funding provided a very
strong valuation for Ingenuity, while THG gains a major
commercial collaboration with a "digital global champion"
** "This partnership with Softbank could be the first of
many other deals to deliver value across the group," Liberum
adds
** J.P. Morgan says the remaining about $270 million will be
raised through institutional placing, with Sofina SOF.BR , one
of the company's existing major shareholders, set to participate
of up to $85 million
** The analysts sees the placing to help fuel further growth
initiatives, with Jefferies flagging THG's annual guidance for
GBP 250 mln of M&A could be exceeded once two planned purchases
are completed
** The stock enjoys its best day since listing in Q3 2020
with today's gains narrowing year-to-date losses to about 13%
((juliette.portala@thomsonreuters.com))