THG chief executive Matthew Moulding
(Picture: Handout)THG’s founder and chief executive Matthew Moulding has confirmed plans to give up his ‘golden share’ in the business following a bruising week that saw its share price fall 35% in a day.
THG confirmed in a statement to the market that Moulding would give up his golden share, which allows him to block any takeover of the business. The move was first reported by Sky News over the weekend.
The company said the changes are part of a move to gain a premium listing on the London Stock Exchange. Moulding’s golden share blocks a premium listing under current rules, meaning THG cannot be included in the FTSE indexes.
“After the anniversary of our 2020 listing we feel that the time is right to make this next step and apply to the Premium segment in 2022, thereby continuing the development of THG as we endeavour to deliver our strategy for the benefit of our shareholders, key stakeholders and employees,” Moulding said in a statement.
THG will also launch a review of its corporate governance structure as part of the plan.
Forgoing the golden shares comes after a disastrous week for THG, which was formerly known as The Hut Group. The company saw its share price crash 35% after a capital markets day meant to reassure investor concerns backfired spectacularly.
The stock had fallen around a third ahead of that meeting, amid concerns about plans for THG to focus on its nascent Ingenuity business, which builds online shops for brands. The plan was announced with little consultation and with backing from Japanese investment firm SoftBank.
Last week’s share price decline leaves the company’s stock down over 60% so far this year and led analysts to conclude THG had lost the trust of investors. There have been concerns about THG’s governance and share price structure since it listed last year. As well as his golden share, Moulding is executive chair and chief executive of the business. Sky reported on Sunday that THG was considering appointing another independent director to the board to address concerns.
