Softbank, the Japanese conglomerate, has officially sold its entire stake in THG (The Hut Group), a British e-commerce and technology company. The sale includes over 80 million shares and resulted in a loss of approximately £450 million for Softbank. THG founder Matthew Moulding’s company has acquired around 13 million shares, while Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, has purchased nearly 68 million shares.

This move by Softbank comes as the shares are being sold at a significantly lower price of 39p each, compared to their trading price of almost £8 less than two years ago. It indicates Softbank’s decision to exit its investment in THG.

QIA’s involvement in THG is not new, as it played a significant role in the company’s IPO in September 2020. The investment fund specializes in retail, consumer, and technology industries and focuses on growth opportunities with positive impacts.

Matthew Moulding’s purchase of additional THG shares demonstrates his commitment to the company and its strategic direction. This is his fourth investment in THG since the IPO, totaling over £38 million. With this acquisition, Moulding’s direct and indirect holdings in THG will reach approximately 321 million shares. Moulding expressed his satisfaction in increasing his family’s stake in THG and acknowledged the shared vision with QIA regarding the company’s potential in global markets. He also praised THG’s progress in major divisions and believes that the current macro-conditions present even greater opportunities for the company to disrupt the global beauty, nutrition, and technology markets.

Though Softbank’s stake in THG has come to an end, Moulding emphasized that THG will continue to benefit from the relationships it has established across Softbank’s international technology portfolio. These connections have been valuable for THG as a financial and commercial partner.

It is worth noting that Softbank had previously terminated an agreement to acquire around 20% of THG’s Ingenuity tech division for $1.6 billion.

With Softbank’s exit as a stakeholder, THG enters a new chapter as a British e-commerce and technology company. QIA and Matthew Moulding’s increased holdings position THG to seize the vast opportunities in the global market and continue its growth trajectory.

Useful links:
1. THG Official Website
2. QIA Official Website