THG Rejects 600 Million Pound Bid for MyProtein Brand from Former Director

Listed retailer THG has firmly rejected a significant takeover offer for its MyProtein brand, valuing the nutrition business between £400 million and £600 million. The bid, originating from former board member Iain McDonald’s investment vehicle Selkirk, was dismissed as fundamentally undervaluing the business and its growth potential.

The proposal, described by THG as “wholly unsolicited, largely unfunded, and highly conditional,” was structured primarily through newly issued Selkirk shares, with the remainder to be funded through new equity and debt issuance. THG’s board highlighted significant concerns regarding the execution complexity and funding uncertainties surrounding the proposed deal.

McDonald, who departed THG’s board in March 2024 following a shareholder rebellion against his re-election, launched Selkirk in October last year with backing from activist investor Kelso Group. The activist fund, led by City financier John Goold, maintains a 20 per cent stake in Selkirk while holding a smaller position in THG directly.

Matthew Moulding, THG’s founder and chief executive, who recently invested an additional £60 million to support the company’s turnaround efforts, has previously likened public company life to “Squid Game for entrepreneurs.” The rejection comes as THG continues its restructuring programme amidst ongoing pressure from activist investors concerning the company’s share price performance since its 500p per share listing in 2020.

The market responded positively to the rejection announcement, with THG shares climbing 0.9 per cent to 29.3p during Wednesday morning trading. The development marks a significant moment in THG’s ongoing strategic review and demonstrates the board’s confidence in MyProtein’s standalone value proposition.