Australia's Adore Beauty rejects takeover proposal from THG

Australia’s Adore Beauty confirmed on Monday that it had rejected a takeover proposal from British ecommerce group THG.

Responding to press speculation, Adore said it had received a non-binding, conditional and indicative proposal from THG at AUD1.25 to AUD1.30 per share in cash.

The proposal was subject to various conditions including due diligence.

"Following a review of the terms of the proposal with the assistance of its financial and legal advisers, the board of Adore Beauty concluded that the proposal undervalued the company, was unable to be implemented, and was not in the best interests of shareholders," it said.

"For these reasons, the board rejected the proposal. The board is focused on maximising value for all shareholders."

Shares in Adore surged 20% on the news.