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Kelso Group Holdings PLC shares surged on Monday after its investee company THG PLC it said it has received a buyout proposal from Apollo Global Management Inc.
Shares in THG surged 36% to 90.00 pence each in London on Monday afternoon. Shares in Kelso jumped 26% to 3.78p each
Kelso is an investment firm focused on UK small and mid-cap companies. THG, a Manchester-based online beauty products retail platform, is Kelso’s first such investment.
Kelso made its debut on the London Stock Exchange as Insight Business Support PLC back in July 2021. In November of last year, it changed its name to Kelso.
In January, Kelso purchased 5.0 million shares for a 0.4% stake in THG. Kelso said it paid an average of 54.5p per share, so forking out around £2.7 million in total.
In March, Kelso then purchased an additional 2.4 million shares in THG, bringing its total interest to 7.4 million shares. It did not say how much it paid for the new THG shares.
On Monday, THG said it had received a buyout proposal from Apollo Global Management
THG said that it is ‘a highly preliminary and non-binding indicative proposal’, but did not disclose the terms of the proposal.
Apollo now is required to announce its intention to make an offer or walk away by May 15.
‘There can be no certainty that any firm offer will be made. A further announcement will be made if and when appropriate,’ THG added.
Meanwhile, Kelso said: ‘Kelso notes that its only significant asset is its investment in THG.’
‘Kelso will monitor this situation closely and update Kelso shareholders accordingly.’
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