THG CEO Sounds Off on Social Media in the Midst of US Buyout Firm Apollo’s Takeover Proposal

THG’s CEO Matthew Moulding is sounding off on social media about the media’s coverage of the beauty company in the midst of US buyout firm Apollo’s bid to take it over.

 

A LinkedIn post by Moulding on Tuesday, April 18, was directed at the British press, hedge funds and bank analysts. 

 

“The purpose of ‘the game’ is simple,” he wrote. “Bet that a share price will fall, and make sure you win the bet by doing everything possible to discredit the company. The more aggressive the claims and actions against a company, the bigger the share price impact. Strange work, I know, but it pays big. And if you repeat it time and again, against a plethora of UK listed companies, then the rewards are mind boggling. I put this video together for my 2022 staff Christmas presentation, drawing on Wolf of Wall Street.”

 

Moulding also went on to say the “repetitive pattern” across the LSE explains the existence of minimal pension or institutional funds investing in the LSE. Citing the Tulchan Stewardship Report, pension funds held 55-60% of UK equities in the 1990s —a figure that is currently 2%. 

 

“In simple terms, the UK market has suffered from years of ‘over-fishing,’ where small groups of industry professionals come together to try and damage UK businesses, and their share prices,” Moulding wrote. “Nobody tells you about this when joining the LSE, but it finds you soon enough. The number of CEOs of other listed companies that have reached out to me since THG joined the LSE is remarkable. Each wanting to share their war stories.”

 

He continued, “The increasing flurry of companies leaving London, with Boards speaking out about the state of the market, is now bringing attention to the problem. You know things must be serious when some Boards are even daring to publicly speak out about it while still listed on the LSE, something that would have stirred an angry response as recent as last year.”

 

Despite posting an operating loss of over $618 million in 2022, the company saw stocks jump 45% to 93.45p per share at the start of trading on April 17.

 

“The past 48 hours have been ironic,” he said. “A recent negative press against THG & me has had dramatically the opposite effect than intended. A throw-away line in an otherwise typically wildly inaccurate press piece, resulted in a share price spike and an obligation to make an announcement, culminating in a c.45% increase in the share price on the day. Ouch!”

 

Jamie Gallagher, CEO at Fentexa, praised Moulding for his input on the matter. 

 

“The company needs a new home. Somewhere that appreciates the work you and your team do. But has to be done at a fair and honorable price,” wrote Gallagher. “Many of us friends, colleagues, employees, charities etc. have invested heavily in you and your management team over the years and as you said 12 months ago ‘£1.70 significantly undervalues the company, no deal!’ We are in a much better position 12 months on, we are all counting on you. Good luck over the coming weeks.”

Click here to read about our coverage of Cult Beauty Co-Founder Alexia Inge's exit eight months after it was acquired by THG.