Online retailer THG rejects Apollo takeover offer

THG, a British online retailer of beauty and nutrition products, rejected a nonbinding takeover offer from private equity firm Apollo Global Management, adding that there is "no longer any merit in continuing to engage," sending its stock plunging.

Why it matters: THG, formerly known as The Hut Group, is becoming a poster child for not accepting the new valuation environment.

• Last summer it rebuffed multiple approaches, saying they undervalued the business.
• But those bids were more than double where THG was trading before receiving the Apollo offer, let alone after its latest refusal and subsequent slide. As of right now, THG's market cap is around $1.7 billion.

More, per Bloomberg: "The company has had a bumpy ride since its 2020 listing due to governance concerns, the surging price of whey — which it uses in its protein shakes — and speculation over the future profitability of its Ingenuity unit, which helps other retailers sell online."