Kelso Group Holdings PLC on Friday said it continued to believe in the ‘strong underlying value’ of e-commerce platform THG PLC, as the latter terminated takeover talks with Apollo Global Management Inc.
Kelso shares fell 20% to 2.54 pence each in London on Friday morning, while THG shares were down 9.9% to 67.33p each.
Kelso, a London-headquartered investment company, said regarding THG it looked ‘forward to being able to remain a shareholder of this exciting company.’
Kelso reiterated that it would like THG to focus on cash generation, move to the premium index of the London Stock Exchange from the standard index, and to announce a share buyback ‘which we would urge the company to enact rapidly,’ as well as clear shareholder communication and a clear value realisation plan.
Meanwhile, Kelso said it continued to see positive trading momentum during 2023 with improved profitability and cash neutrality.
It targets cashflow positivity in 2024 and a 9% earnings before interest, tax, depreciation and amortisation margin in the medium term, aiming for Ebitda of £200 million and sales of around £2.22 billion.
In its 2022 release, Kelso did not include Ebitda figures. It had posted a pretax loss of £289,324, widened from £131,682 in 2021. It had no revenue, unchanged from 2021.
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