Analysis & Comment

BlackRock to nearly halve stake in under-pressure e-commerce firm THG

FILE PHOTO: People are seen in front of a showroom that hosts BlackRock in Davos, Switzerland Januar 22, 2020. REUTERS/Arnd Wiegmann

(Reuters) -BlackRock Inc, the biggest institutional investor in THG, is offloading nearly half its stake in the British e-commerce group at a 10% discount to current market prices.

Deal bookrunner Goldman Sachs said on Tuesday BlackRock’s sale of 58 million THG shares was priced at 195 pence apiece, or a 10.3% discount to the stock’s Monday close. The deal is valued at 113.1 million pounds ($154.4 million).

The U.S. asset manager had a 10.13% stake of nearly 124 million shares as of mid-October, according to Refinitiv data.

The sale follows a rocky month for THG in which its share price sank some 57% as investors were left underwhelmed by a company presentation focusing on its e-commerce technology platform Ingenuity.

Manchester-based THG’s attempts to soothe investor nerves, including naming an executive from its backer SoftBank to its board and pursuing a premium listing on the London Stock Exchange, have so far failed to have an impact.

($1 = 0.7323 pounds)

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