THG Plc shares fell after the British online shopping emporium said it had ended a deal with SoftBank Group Corp. due to “global macroeconomic conditions.”

SoftBank, which became a major investor in THG last year, had the right to exercise an option to buy a 20 percent stake in the UK company’s Ingenuity business, which helps third party businesses sell goods online. THG said the option arrangement was terminated by mutual agreement, according to a statement Tuesday.

THG shares fell as much as 6 percent before paring back slightly.

Speculation has been mounting for months that SoftBank, one of the world’s largest strategic investors, would not exercise the option.

When SoftBank first invested in THG and was granted the right to take a near 20 percent stake in Ingenuity it helped bolster the e-commerce group’s once lofty valuation which has since been plummeting as concerns over its business model and governance controls mount.

Founded in 2004 by Matthew Moulding and John Gallemore, THG, formerly known as The Hut Group, started out selling CDs but today operates hundreds of websites selling beauty, skin care and health-food products as well as helping rivals sell online via Ingenuity.

Moulding has kept a tight grip on THG as a major shareholder, landlord and chief executive and only recently relinquished the role of chairman. He has pledged to give up his golden share, which allows him to veto a takeover, smoothing the way for THG to move its listing to the premium segment of London’s Stock Exchange.

Takeover speculation has swirled around THG since November when Moulding said he regretted floating the company and hinted he may take the business private again. The company has already rebuffed two separate takeover approaches from entrepreneur Nick Candy and a consortium of Belerion Capital and hedge fund King Street Capital Management.

One of the conditions for SoftBank to exercise its option was for THG to carve out Ingenuity from the rest of its business.

THG said Tuesday it had separated its key trading divisions which will simplify the corporate structure and “provide flexibility to enter into future partnerships.”

The company provided no further information on why the agreement with SoftBank had been terminated.

By Katie Linsell

Learn more:

THG Rejects ‘Numerous’ Approaches, Warns on Profit This Year

British e-commerce company THG said it had rejected “numerous” approaches that failed to reflect its value as it warned inflationary pressure would result in broadly flat earnings this year, missing market forecasts by 22 percent.