Softbank sells entire THG stake following end of investment deal

Japanese investment giant Softbank has sold its entire stake in British retail group THG at a loss of 450 million pounds after the two announced the end of an investment deal in July.

THG said Monday that Softbank has agreed to sell 67.8 million shares to Qatar’s sovereign wealth fund, and 12.8 million shares to THG chief executive and founder Matthew Moulding.

Shares in THG, which owns a portfolio of online fashion, beauty, and wellness brands, were up more than 10 percent on Tuesday following the news.

It marks the end of a complicated and short-lived relationship between the two companies.

In May of last year, Softbank bought an 8 percent stake in THG, which experienced soaring revenues during the pandemic as shoppers switched to online channels.

But it has been a rocky road for THG since then, mired by a profit warning and concerns over the group’s corporate governance.

In July, THG and Softbank announced that their deal was off, citing “global macroeconomic conditions”.

At the time, THG’s share price had fallen almost 90 percent since it floated on the London Stock Exchange in 2020.