- Adore Beauty Group (ASX:ABY) rejects a takeover offer from London Stock Exchange-listed THG plc
- Adore shareholders have rewarded the move with shares up nearly 20 per cent heading into lunchtime trades
- The company confirmed media reports from over the weekend it had received an offer
- But the bid undervalued the company, management said
- Shares last traded at $1.11
Adore Beauty (ASX:ABY) has confirmed media reports over the weekend it received a takeover bid from a company in London.
It’s also rejected the takeover offer.
Adore Beauty’s share price, in turn, spiked nearly 20 per cent heading into lunchtime trade today.
Who wants to buy it?
Adore received a takeover offer from London-listed THG Plc (formerly ‘The Hut Group’).
Both companies are online-facing beauty product retailers, with THG headquartered at Manchester Airport in England.
THG describes itself as a “digital innovator”, with a portfolio of leading beauty, health, wellness and sports nutrition brands.
There’s just one problem in its bid for 100 per cent of Adore Beauty’s shares – Adore reported THG undervalued the company.
Not in best interests
“Following a review of the terms of the proposal with the assistance of its financial and legal advisers, the Board of Adore Beauty (Board) concluded that the Proposal undervalued the company,” an unattributed release read today.
“[The bid] was unable to be implemented, and was not in the best interests of shareholders. For these reasons, the Board rejected the proposal.”
THG offered Adore a deal where it would pick up all shares for A$1.25 – $1.30 per share.
Shares were worth 93c back on Friday.
Shareholders, no doubt, will be hoping for a Hollywood-style bidding war.
Adore Beauty shares last traded at $1.11.