Asia stocks edge higher as tech meanders on Nvidia; Hong Kong hit by soft earnings
LONDON - Selkirk Group PLC, an AIM-listed investment vehicle, announced Monday that its recent bid to acquire the sports nutrition brand MyProtein from THG plc has been rejected. Selkirk had proposed a purchase price between £400 million and £600 million, which would have been paid in a combination of cash and new Selkirk shares, potentially issued at a premium to the current share price.
The acquisition was intended to create value for Selkirk’s shareholders and provide benefits to THG and its shareholders. However, THG’s board declined the offer due to concerns over valuation, the structure of the proposal, its deliverability, and the potential trading liquidity of MyProtein as a standalone entity on the stock market.
Selkirk expressed respect for THG’s decision but disagreed with the board’s conclusions. Despite the setback, Selkirk acknowledged MyProtein’s status as a "world class brand" and its undervaluation by the UK market. The company also mentioned that while it is no longer in talks with THG, it may reconsider the proposal if circumstances change.
Selkirk is continuing to explore other acquisition targets, emphasizing its reverse takeover model as an attractive option for companies considering an initial public offering or for listed companies aiming to unlock value in a subsidiary. This model offers benefits such as price discovery, access to capital, and enhanced brand profile, while allowing owners to retain an interest in the asset’s future valuation.
The Selkirk Board and its advisors, backed by significant experience in the consumer e-commerce, technology, and digital media sectors, as well as the broader UK stock market, are actively pursuing their current pipeline of opportunities. They remain committed to a disciplined approach to potential acquisitions and the preservation of capital raised at their initial public offering.
Selkirk expressed gratitude for the continued support from its investors and conveyed enthusiasm for the future prospects and opportunities ahead. This statement is based on a press release from Selkirk Group PLC.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.