Pureplay online beauty retailer Adore Beauty has refused a proposal to take over its business from UK-based e-commerce group THG, stating it “undervalued” the company.

Adore Beauty confirms THG had offered to acquire 100 per cent of the shares of the company by way of a scheme of arrangement for $1.25-$1.30 cash per share.

The company’s board of directors has reviewed the proposal, which was subject to conditions including due diligence, with the assistance of its financial and legal advisors. 

The final decision of the board was to reject the offer as it “undervalued the company, was unable to be implemented, and was not in the best interests of shareholders”.

Launched in 2000, Adore Beauty operates in Australia and New Zealand with a stock list of more than 270 brands and 12,000 products.

Following the refusal of the offer, the company’s shares surged 20.9 per cent to $1.13, according to the Australian Financial Review.