Adore Beauty (ASX:ABY) has rejected a non-binding takeover proposal from cosmetics, dietary supplements, and luxury goods eCommerce retailer THG (LON:THG).
Under the cash offer, THG was looking to acquire all shares in Adore Beauty via a scheme of arrangement for between $1.25 and $1.30 a share.
Adore, which has a market capitalisation of $89.21 million, says it reviewed the terms of the proposal with the assistance of its financial and legal advisors and ultimately concluded that the offer undervalued the company and was not in the best interest of its shareholders.
Following today’s (27 November) announcement, Adore Beauty’s share price has increased by 18.18% at $1.10 as of 1:45pm AEDT.
Adore Beauty is an Australian beauty-focused eCommerce website that partners with a portfolio of more than 270 brands and 12,000 products. The company operates in Australia and New Zealand.
THG plc is a British e-commerce retail company headquartered in Manchester, England. The company sells own-brand and third-party cosmetics, dietary supplements and luxury goods online.
Write to Aaliyah Rogan at Mining.com.au
Images: Adore Beauty