Busy Christmas for THG board as Ingenuity split to complete in New Year
The board of THG intends to drive the formal split of its ecommerce services business IngenuityCo over the Christmas period with a view to clean break at the start of January.
A timetable released to the Stock Market this week showed that a General Meeting at the offices of law firm Clifford Chance on the 27th of December will confirm the votes of the shareholders.
But the ecommerce engine room will now be valued at £87m, a reduction from the initial price of £100m due to the application of an “adjustment mechanism”.
After the demerger, THG will consist of the Nutrition and Beauty product divisions, and will be the largest customer of the privately owned IngenuityCo.
The document also reveals that co-founder John Gallemore will resign from the board of THG on completion of the demerger.
A significant proportion of THG’s lease liabilities (£298 million) would also transfer with IngenuityCo on completion of the demerger, thereby reducing THG’s gross debt following the Demerger. Consequently, accelerating the deleveraging of THG, improving its credit rating.
THG’s existing debt facilities, namely the €600 million term loan B, the £109 million term loan A and the undrawn £170 million revolving credit facility are expected to stay with RemainCo.
