Source: CRN Australia
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  • Thorn Group (TGA), owner of Radio Rentals, has announced it has suspended a planned share buyback as some shareholders are against the move
  • The company spent most of 2020 engaged with the Takeovers Panel, an Australian Government entity, which ended with Thorn paying part costs
  • In a wide-ranging business update released on Friday, Thorn Group stated it was working to find an independent, suitably qualified, Non-Executive Director
  • It comes after TGA shareholders voted down suggested changes to the Board of Thorn Group in an extraordinary general meeting in December
  • Finally, TGA used today’s update to announce it was working on expanding the product range within its operating Radio Rental stores
  • Shares in Thorn Group are trading steady at 18.5 cents each

Radio Rentals’ parent company, Thorn Group (TGA), has announced it has suspended a planned $15 million to $25 million share buyback.

The embattled company released a wide-ranging business update on Friday, revealing it had abandoned the share buyback as some shareholders are against the move.

Specifically, Thorn stated that “it is now evident from positions stated by some of Thorn’s substantial shareholders in the recent Takeovers Panel proceedings, that those shareholders are opposed to the consequences of the return to shareholders
of significant amounts of capital in this manner.”

The business spent most of 2020 engaged with the Takeovers Panel, an Australian Government entity, which ended with Thorn paying part costs to those involved.

Meanwhile, today’s business update from TGA stated it was continuing to work on hiring an independent, suitably qualified, Non-Executive Director.

It comes after TGA shareholders voted down suggested changes to the Board of Thorn Group in an extraordinary general meeting in December.

Finally, the business also announced in Friday’s business update that it was working on expanding the product range within its operating radio rental stores.

Commenting on Thorn’s wider business strategy to improve convenience and access for customers, CEO Pete Lirantzis said he’s expecting strong results.

“These initiatives are already reaping tangible results and we expect will
deliver enhanced value for all shareholders,” he said.

Shares in Thorn Group are trading steady at 18.5 cents each at 12:50 pm AEDT.

TGA by the numbers
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