The Thorn Group Ltd (ASX: TGA) share price climbed by more than 5% earlier today, after the company made announcements regarding its proposed share buyback, as well as planned changes to its board.
At the time of writing, the Thorn share price is trading 2.5% higher at 19 cents per share.
What did the Thorn Group announce?
The financial company says that its has now suspended the proposed $15 million–$25 million share buyback, after opposition from shareholders was conveyed during the Extraordinary General Meeting (EGM) called on 4 January.
As a background, on 12 October 2020, management said it was considering undertaking a buyback that would return cash to shareholders, which it said were the wishes of some of its shareholders at the time.
The proposal was subsequently taken to the Takeovers Panel by some of its shareholders. The concern was over its main shareholder, the Somers Group, which owns around 20% of Thorn, being able to acquire “further control over the share in Thorn in a manner that is unacceptable”. The proposal was subsequently rejected by shareholders at the EGM.
The company also announced today that it will continue the process of recruiting a new independent and qualified non-executive director to join the board, after proposed board changes were also rejected by shareholders at the EGM.
What does Thorn Group do?
Thorn is a financial services company providing leasing products to consumers and businesses. The company has been listed on the ASX since 2006.
Thorn’s flagship is the consumer leasing business, Radio Rentals, which is a leader in the household goods leasing market, operating since 1937.
In July 2020, the company announced the full closure of its Radio Rentals stores. The company had initially closed the stores temporarily due to the coronavirus pandemic, later deciding to close them permanently.
The Radio Rentals business will now instead be transformed into a purely online model that will onboard customers digitally.
About the Thorn share price
The Thorn share price is down around 5% over the year, after rising strongly by 120% in the last 6 months.
The company had earlier reported an $81 million loss for its full year FY20.
Thorn Group commands a market value of $70.7 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post What’s moving the Thorn (ASX:TGA) share price today? appeared first on The Motley Fool Australia.
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