THG PLC has struck a deal to shift its OnDemand division, Sky News reported late Thursday, wrapping up a programme on non-core asset disposals.
The e-commerce company will sell the unit to its management team, helped by financing from retail advisory and investment firm Gordon Brothers, Sky News reported.
The unit includes entertainment retailer Zavvi and gifting group I Want One Of Those.
According to Sky sources, a deal will be announced on Friday.
THG earlier this year sold ProBikeKit to Frasers Group PLC.
Sky News reported THG has netted ‘several million pounds’ in total during its disposal programme.
https://news.sky.com/story/thg-hits-high-note-with-sale-of-music-retailer-zavvi-12924448
THG shares have been back in favour recently, rising more than 45% over the past month.
THG last month said its Chief Executive Matthew Moulding surrendered the special share he held. The special share will be cancelled by THG. It had been a sticking point to some investors, as the share had special voting rights attached.
The share allowed Moulding to veto any takeover bid for three years. It has been unpopular with investors and blocks THG from joining the FTSE 100 or FTSE 250 indices.
Shares in the company rose 2.9% to 107.05 pence each in London on Thursday, still some way off its 500p float price.
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