- Retail company Thorn Group (TGA) intends to conduct a minimum holding buyback of ordinary shares from certain shareholders
- The company will buy back shares from shareholders who hold unmarketable parcels of shares, consisting of 2631 shares or fewer
- Once sold and transferred back for Thorn Group at 18.5 cents each, the repurchased shares will be cancelled
- The company decided to conduct the buyback to reduce administrative costs of maintaining a large number of small holdings
- Thorn Group closed in the grey to trade at 19 cents per share
Retail company Thorn Group (TGA) intends to conduct a minimum holding buyback of ordinary shares from certain shareholders.
Specifically, the company will buy back ordinary shares from shareholders who hold less than a marketable parcel of shares in Thorn Group. According to the ASX Listing Rules, any shareholding valued at less than $500 is considered to be an unmarketable parcel of shares.
Based on the closing market price of Thorn Group’s shares on February 18, 2021, an unmarketable parcel of shares consists of 2631 shares or fewer. The company will consider shareholders who held unmarketable parcels of shares as of 7:00 pm AEDT on February 18, 2021 to be eligible for the buyback.
These eligible shareholders will be able to sell their shares back to Thorn Group at a buyback price of 18.5 cents each. Those shares will be cancelled once they have been transferred back to the company.
Based on Thorn Group’s register of members on February 18, 2021, 1952 individual shareholders hold an unmarketable parcel. This represents approximately 34.86 per cent of the company’s 5600 total shareholders.
Roughly 0.63 per cent of Thorn Group’s shares are currently held by shareholders with unmarketable parcels. This means that the number of shares which could potentially be bought back by the company would account for less than 1 per cent of its entire share capital.
The aggregate value of Thorn Group shares held by eligible shareholders is $405,971.10.
The company decided to conduct the buy-back to reduce the administrative costs associated with maintaining a large number of small holdings.
Thorn Group closed in the grey to trade at 19 cents per share at 4:10 pm AEDT.