Thorn Group (ASX:TGA) share price jumps 7% on takeover offer

The company has received an unsolicited takeover offer with little premium to its previous closing share price.

| More on:
a woman drawing image on wall of big fish about to eat a small fish

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Thorn Group Ltd (ASX: TGA) shares are having a bumper session on Friday. At the time of writing, the Thorn Group share price is trading 7.32% higher at 22 cents after the company received an unsolicited on-market takeover bid.

Takeover bid

Thorn Group shares are well in the green today after the company announced Somers Limited is making an on-market, unconditional cash offer to acquire it for 21 cents per share.

Somers is a financial services investment holding company listed on the Bermuda Stock Exchange. The company's core investments are primarily in banking, asset financing and wealth management sectors across Australia, the United Kingdom and Bermuda. Somers has about US$625 million in funds under management.

The Thorn Group share price closed Thursday's session at 20.5 cents, so today's offer isn't quite the premium takeover offer ASX shareholders often see.

However, Somers' bidder statement said that:

This [the offer] may be attractive for Thorn Shareholders given the risks and uncertainties associated with remaining a Thorn Shareholder including, but not limited to:

a) the long term impacts of the COVID-19 pandemic on Thorn's borrowers and their businesses; and

b) general economic and equity market risk

Thorn Group response

Thorn Group has advised that its shareholders should take no action in relation to the offer.

The company has established an independent committee to assess and respond to the Somers offer.

Until then, the company will continue to operate 'business as usual'.

Its been an ugly ride for the Thorn Group share price

Thorn Group provides alternate consumer and commercial leasing products, with one of its divisions better known as Radio Rentals. The company also provides financial products and services, tailored to the needs of Australian SMEs.

In its prime, Thorn Group was a highly profitable business delivering solid year-on-year growth. Back in FY15, when its shares were fetching more than $2.00 apiece, the company delivered a 25.1% increase in revenue to $293.8 million and a 13.6% increase in underlying cash net profit after tax (NPAT) of $34.2 million.

Fast forward to today, the company is attempting to turn things around, announcing a forecast NPAT of $8.4 million for FY21, after an $81 million loss in the previous year.

The Thorn Group share price is up 10% year to date, but down by almost 90% since its 2015 highs.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

More on Mergers & Acquisitions

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Mergers & Acquisitions

IAG share price lifts off on strategic alliance approval

IAG shares are racing higher in Thursday’s sinking market.

Read more »

a group of business people sit dejectedly around a table, each expressing desolation, sadness and disappointment by holding their head in their hands, casting their gazes down and looking very glum.
Mergers & Acquisitions

This ASX 300 share is sinking 33% on takeover collapse fears

Is this takeover dead? Let's find out what is happening.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Mergers & Acquisitions

Why is this ASX 200 stock crashing 15%?

What has sent investors rushing to the exits? Let's find out.

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

Guess which ASX All Ords stock just received a takeover offer

A private equity firm has its eyes on this stock.

Read more »

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

Guess which ASX stock just rocketed 21% on takeover news

Investors are piling into the ASX stock following a confirmed takeover offer.

Read more »

Miner looking at a tablet.
Mergers & Acquisitions

Gold Road shares surge 10% on $3.7 billion takeover offer

The ASX 200 gold stock is soaring after finding itself in the acquisition crosshairs.

Read more »

A corporate team or board stands together and looks out the window.
Technology Shares

WiseTech shares charge higher on $3.5b acquisition news

This tech stock is ending the week positively. But why?

Read more »

Two CEOs shaking hands on a deal.
Financial Shares

This ASX 300 stock is jumping on surprise merger news

This stock could be having a very big makeover.

Read more »