Shulou(Shulou.com)11/24 Report--

Sina Technology News Beijing time on October 18 morning news, it is reported that Softbank Corp. Group will sell its entire stake in the British e-commerce company THG, so that the Japanese technology investment group loss of 450 million pounds (about 3.641 billion yuan) become a reality.

After a series of bad bets, Softbank Corp. is liquidating his internal hedge fund, including his purchase of an 8 per cent stake in THG for about £481 million (about Rmb3.891 billion) in May 2021.

Softbank Corp. will gain 31 million pounds after agreeing to sell 6780 million shares to Qatar's sovereign wealth fund, THG said on Monday. Matt Moulding, co-founder and CEO of THG, agreed to buy the remaining 12.8 million shares from Softbank Corp..

The stake sale, which will take place on Thursday, is priced at 39p, below the company's closing price of 45p on Monday.

Since Softbank Corp. agreed to buy THG shares, the company's shares have tumbled more than 92 per cent, mainly because of slowing sales and shrinking profit margins.

Founded in 2004, THG focuses on selling beauty and nutrition products directly to consumers. The company, formerly known as The Hut, initially made money by selling CD and DVD online for other retailers.

Softbank Corp. is reported to have terminated an agreement to buy a 1/5 stake in THG's original technology division for $1.6 billion.

"We, THG, thank Softbank Corp. for his support as a financial and business partner, and we will continue to benefit from their relationship in the international technology portfolio," Moulding said.

THG's investment is led by Akshay Naheta, a former investor in Softbank Corp.. Naheta was managing SB Northstar, the group's hedge fund division, which was being shut down after losing nearly $6 billion.

In addition to playing a role in the infamous Nasdaq Whale deal, SB Northstar also made disastrous bets on Kahoot, a Norwegian educational software company, and Sinch, a Swedish software group.

Naheta left Softbank Corp. in April and is currently working in Abu Dhabi. He is said to be in talks with Rajeev Misra, who will leave Softbank Corp. and set up a new investment fund with the support of three Abu Dhabi groups.

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