THG has turned down a "wholly unsolicited, largely underfunded" acquisition offer for Myprotein by Selkirk.

The firm, which owns digital beauty, health, wellness and sports nutrition brands, said that it received a proposal for Myprotein at a value of £400m and £600m on a cash-free, debt-free basis.

It added that the majority of the consideration offered was in the form of newly issued Selkirk shares, while the remainder would have been payable in cash from a new equity and debt assurance, which THG stated was "largely underfunded and without appropriate detail on the source".

THG’s board stated that the proposal from the London-based acquisition vehicle undervalues Myprotein and its prospects.

However, investment director at AJ Bell, Russ Mould, said the offer "puts down a marker" for what the Myprotein brand is worth.

He concluded: "For all the drama around THG since it’s been a listed business, it does deserve credit for building up Myprotein into one of the leading brands in the fitness and wellness world.

"There is a big craze, particularly among young people, to hit the gym and have a protein-heavy diet. Protein products are everywhere but Myprotein has done a good job at standing out from the crowd. That’s partly down to THG’s marketing tactics, always offering deals on Myprotein products via its direct-to-consumer operations and that’s helped to build up a loyal fanbase.

"This success has paved the way for Myprotein’s products to be stocked in supermarkets and that has further widened the net for reaching existing and potential customers. It’s exactly the type of business that would appeal to an outfit looking to capitalise on a hot trend. While THG has rejected Selkirk’s approach, this might have fired the starting gun for other interested parties to think about making a move."

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