Adore Beauty skyrockets after it rejects takeover
Make us a preferred source
Make us a preferred source on Google
More news: Shares in online beauty retailer Adore Beauty have surged more than 18% after its board rejected a takeover bid from UK ecommerce play THG. ABY shares were 18.1% higher at $1.105 by 12:30pm AEDT, still at a discount to THG's offer range of $1.25-1.30 per share.
Adore Beauty confirms and rejects bid from UK's THG
The news: Online beauty retailer Adore Beauty has confirmed and rejected a takeover offer from UK ecommerce group THG, after the offer was reported by the Australian Financial Review on Friday.
The numbers: THG made a non-binding indicative proposal to buy 100% of Adore shares at a price of between $1.25-1.30 per share. Adore shares closed at $0.935 on Friday. Adore's board rejected the offer after concluding the deal undervalued the company.
The context: Adore suffered a slump in its FY23 results on the back of tough market conditions, with revenue falling 9.6% to $180.6 million and swinging to a $600,000 loss after netting $2.4 million the year before. Its latest trading update showed signs of improvement however, boosting revenues 4.7% on the previous corresponding quarter. THG — a beauty-focused ecommerce retailer based in Manchester — has been growing its presence in Australia, the AFR reports, by announcing partnerships with local brands including Haircarebear, Celebrity Slim and Skin Virtue.
The sources: ASX Announcement, Trading Update, AFR
