THG, previously known as The Hut Group, is taking significant measures to tackle the decline in its share price. In an effort to improve corporate governance, the company has announced that its founder, Matthew Moulding, will be relinquishing his Special Share rights. These rights previously granted Moulding a higher level of control, allowing him to block takeover attempts, even if other shareholders were in favor. However, this arrangement raised concerns about good corporate governance since Moulding held both the positions of CEO and executive chairman.

By canceling the Special Share, THG will be eligible to apply for a listing on the Premium Segment of the Main Market of the London Stock Exchange in 2022. This move will provide investors with the opportunity to vote on significant acquisitions and enjoy several benefits, including UK FTSE indexation. Although THG currently complies with various aspects of the UK Corporate Governance Code, the board intends to conduct a thorough review of its corporate governance arrangements alongside the application for a Premium Listing.

Matthew Moulding expressed his thoughts on these developments, stating that the one-year anniversary of THG’s 2020 listing is the perfect time to pursue the next step and apply for the Premium segment. He emphasized the company’s dedication to delivering its strategy for the benefit of shareholders, key stakeholders, and employees.

Despite experiencing a nearly 30% decline in share price over the past five days, THG witnessed a 3% increase in its shares after making the announcement. The company aims to address concerns surrounding its corporate governance and enhance investor confidence through these actions. By relinquishing the Special Share and striving for a Premium Listing, THG is demonstrating its commitment to transparency, accountability, and sustainable long-term growth.

Useful links:
1. London Stock Exchange
2. UK Corporate Governance Code