EQ SHAREHOLDER SERVICES | JULY 2025
Pioneering Through Challenges: THG And Ingenuity’s Success Story
At EQ, we’re proud to provide innovative solutions to support our customers, and the recent demerger of THG plc’s subsidiary, TheHut.com Limited (Ingenuity), gave us the chance to do just that.
Demergers are unique to each company, yet this was a particularly unusual event, uniquely structured so that THG shareholders were required to actively elect to receive shares in Ingenuity. Acting as receiving Agent, EQ managed the entire election process, creating the Ingenuity register of members, and delivering the shares to the new Ingenuity shareholders. To mitigate any loss of share certificates, EQ devised a digital solution for the small number of new Ingenuity shareholders, who elected to hold their position outside of the CREST system.
Adding to the intricacy, Ingenuity would be a private company, admitted to trading on the JP Jenkins share dealing platform, with restrictions on transfers, although the stock would be available in CREST. Working with the company, Euroclear and JP Jenkins, EQ was able to provide a restricted share monitoring service for the shares available within the CREST system, ensuring the company and the shareholders could comply with their shareholder agreements.
We played a critical role in making it all happen, proving why we’re at the forefront of innovation in the industry.
Key responsibilities and outcomes
1. Helping shareholders navigate their options
With the unusual nature of the demerger, we knew clear communication would be crucial. Shareholders needed to understand what their choices meant and how to act, we created detailed forms, FAQs, and a dedicated helpline to ensure no question went unanswered.
2. Implementing the first shareholder restriction agreement monitoring process within CREST
Ingenuity’s decision to have their restricted shares available with the CREST system required the design and implementation of a completely new system process. We worked closely with market participants developing a solution that ensures trades are affected in accordance with the shareholder agreements.
3. Managing Tight Deadlines
Our project management team ensured every deadline was met with precision, from shareholder elections to the distribution of shares.
A groundbreaking move
1. Pioneering new territory
By creating the first-ever restriction monitoring system in CREST, we showed we’re not afraid to innovate and lead.
2. Adapting to unique requirements
The elective nature of this demerger required us to design a flexible process that worked for everyone, both for certificated holders via a form of election and for CREST holders via an electronic election within the CREST System.
3. Shareholder First
We made sure shareholders understood their options, delivering clear communication and excellent support throughout the process.
4. Setting a market benchmark
This demerger now sets a new standard for how complex, non-standard corporate actions can be delivered.
The results
- Shareholders successfully opted to exchange their THG shares for Ingenuity shares.
- The process was completed on time, without issue.
- We have set a new precedent for corporate actions involving private securities.
Conclusion
The THG demerger was anything but ordinary, but we thrive on challenges like this. By combining clear communications, precise execution, and ground-breaking innovation, we delivered a seamless experience for both THG and its shareholders.
This project highlights what makes us special, our ability to tackle the most complex challenges with creativity and confidence. It’s a success story we’re proud of and one that sets the stage for future innovations in the industry.
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