THG HG Plc, a beauty and lifestyle e-commerce company has raised more than $1 billion in new equity, including $730 million from Japan’s Softbank Group the company said on Tuesday.
The deal gives Softbank a stake of just shy of 10% in the Manchester-based company, previously known as The Hut Group, and a choice to put a further $1.6 billion into THG’s Resourcefulness business.
THG owns beauty retailer Lookfantastic, cosmetics brand Illamasqua and magnificence box services Glossybox, just as enhancements firm Myprotein.
The equity placing was estimated at 596 pence per share and was oversubscribed, with THG raising a sum of $320 million from different investors. THG shares soared as much as 14% at the open on Tuesday.
The money infusion comes about a year after THG’s London listing and will be utilized to support further acquisitions. The company additionally declared it consented to purchase Bentley Laboratories LLC, another Jersey-based eminence magnificence designer and maker, for $255 million.
THG Ingenuity is THG’s technology arm that provides e-commerce services to different organizations. In the event that Softbank practices its choice to put resources into that division, it would give the Japanese conglomerate a 19.9% premium in THG Ingenuity at a valuation of $6.3 billion.
The equity fundraising was driven by Barclays, Citigroup, Goldman Sachs and Jefferies.
