Kelso to vote against reappointment of Charles Allen as THG chair

Lord Charles Allen

Activist investor Kelso is to vote against the reappointment of Lord Charles Allen as the chairman of THG.

In a statement to the stock market this morning Kelso said it believes THG shares trade at a significant discount to its sum of the parts value.

It continued its critical commentary on THG’s failure to move from the Standard List to the Premium List on the stock market and said: “as a result of the lack of action and clarity on these matters, Kelso intends to vote against Resolution 5, the re-election of the Chair, whom we believe should be leading strategy, at the upcoming THG AGM.

“In the spirit of shareholder democracy, we are making this statement to encourage shareholder debate.”

Kelso remains firmly convinced that the sum of the parts valuation of THG continues to significantly exceed the current market capitalisation. 

Independent broker Peel Hunt recently initiated coverage of THG with a 141p share price target and a 280p valuation on a sum of the parts basis. 

“It is disappointing that the THG share price remains below 80p despite the recent positive annual results and Q1 trading statement. For context, THG listed at 500p and last raised capital at 590p per share,” the statement continued.

THG’s AGM on 24 June 2024 will see each of the directors voted on for re-election. 

Kelso commented: “Whilst major strategic and structural issues remain unaddressed, the poor share price cannot be blamed on the London Stock Exchange. As a result of the lack of progress we plan to vote against the Chair at the upcoming AGM.”



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