BlackRock, the largest institutional investor in THG, is selling almost half of its stake in the embattled ecommerce group at a 10 per cent discount to Monday’s closing share price.
The world’s largest asset manager sold 58m shares in THG, at a price of 195p per share, according to bookrunner Goldman Sachs. This marks a 10.3 per cent discount to the stock’s closing price on Monday. The deal was valued at £113.1m.
As of October 13, BlackRock owned a 9.55 per cent stake in THG across multiple active and passive funds, according to CapitalIQ data, and was the largest investor after THG’s founder Matthew Moulding, who owns about 15 per cent of the company.
THG, formerly known as The Hut Group, floated at 500p a share in September 2020, which was followed by a post-IPO rally that took the stock to almost 800p. However, the shares have come under sustained pressure in recent months, reflecting investor concerns about governance, strategy and valuation.
THG shares fell 6 per cent to 205p on Tuesday morning.
BlackRock and THG did not immediately respond to a request for comment.
BlackRock sells almost half its stake in THG
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