Thorn Group Field Acquisition Offers
Radio Rentals owner, Thorn Group, has reportedly attracted acquisition offers from several interested parties, a year after being penalised $2 million for breaching the National Credit Act.
According to The Australian, the conglomerate has fielded four offers from suitors, after announcing the commencement of a Gresham-conducted strategic review.
The news has sent Thorn Group shares up 8.7% to 50 cents by late afternoon.
Reports suggest one party was eager to acquire the entire business, whilst another two considered buying its equipment finance loan book.
Another party was reportedly interested in its lending book.
Disclosed in an ASX statement, the Thorn Group asserts its strategic review is “ongoing”, and “while some parties have expressed interest, no decisions have been made by Thorn.”
Announced on April 1, the strategic review considers several aspects including “alternative ownership considerations”, “operational practices”, “procedures and business profitability.”
Thorn Group’s 2019 Annual Financial Report is scheduled to release before market open tomorrow.
The company’s stable of businesses include Radio Rentals, RR Rentlo Reinvented and Thorn Business Finance.
Thorn Group Radio Rentals stores are not associated with South Australia-based Radio Rentals outlets.
In South Australia, Thorn Group trades as Rentlo Reinvented.
Last year, the Thorn Group admitted to over one million breaches of the National Credit Act, after failing to adequately check whether customers could afford its white-goods leasing program.
The news follows a recent profit downgrade, flagged last month.