The stock price for online retail platform THG surged as high as 47% on news of a "highly preliminary" non-binding acquisition proposal from New York-based private equity firm Apollo Global Management. The British company said that Apollo must announce a firm intention to make an offer by May 15 or walk away.

THG also released its 2022 full-year preliminary results and operating losses have more than doubled to £495.6 million ($616.4 million), but profitability improved in the first quarter of 2023 despite an 8% fall in sales.

THG was founded in 2004 by Chief Executive Matthew Moulding and CFO John Gallemore, retails more than 8,000 brands, and operates more than 160 localized websites across 35 languages and 42 currencies. THG has become one of Europe's largest online retailers of premium beauty brands. Other holdings include Eyeko, Illamasqua, ESPA, SkinStore, RY, Glossybox, Lookfantastic.com, Grow Gorgeous, Ameliorate, Acheson & Acheson, Christophe Robin, Perricone MD, Dermstore, and Cult Beauty.

The group floated with great fanfare on the London Stock Exchange in 2022 at an opening valuation of about £5.4 billion ($7 billion), the biggest debut by a market cap since Royal Mail in 2013. At its peak in early 2021, the business was valued at £10 billion ($12.4 billion). Its market value before the confirmation of Apollo's approach was around £925 million ($1.1 billion). The Manchester-based group has been plagued by setbacks and a tumbling share price that has lost nearly 70% of its value this year and fallen almost 80% since its IPO.

Last summer, a consortium consisting of Belerion Capital and King Street Capital Management and property billionaire Nick Candy expressed interest in buying THG but ultimately walked away. THG acknowledged receiving proposals but said all recent approaches have been unsolicited and significantly undervalued the company. According to Bloomberg, the Balerion consortium bid valued the firm at £2.1 billion ($2.6 billion). THG shares are currently quoted at around 93 pence. 

One-time anchor investor SoftBank Group Corp. agreed to an option to buy 19.9% of THG Ingenuity in a deal that sees it invest $730 million in the group in May of 2021. Last October, the Japanese investor unloaded its stake in the group for £31 million, taking a loss of around £450 million ($509 million).