- Radio Rentals owner Thorn Group (TGA) encourages its shareholders to reject Somers’ unsolicited takeover bid, saying the offer is too low
- The company last month offered to buy all of TGA’s shares that it doesn’t already own for 21 cents per share
- However, Thorn argues the shares are worth between 28 cents and 31 cents each and has labelled the offer unfair and unreasonable
- TGA also provided an update on an old loan to The Forum Group, after the business collapsed when Westpac (WBC) accused its CEO of fraud
- TGA shares are trading up 1.13 per cent at 21.3 cents each
Radio Rentals owner Thorn Group (TGA) has encouraged its shareholders to reject Somers’ unsolicited takeover bid, stating the offer is too low.
The company released its official Target’s Statement on Friday, responding to Somers’ unsolicited, on-market takeover bid announced in June.
Somers has the largest shareholding in TGA and offered to buy out all the remaining stock for 21 cents per share.
However, Thorn argues an independent assessment of the business shows its shares were worth between 28 cents each and 31 cents each.
As a result, the company has requested shareholders reject the offer as it wasn’t fair or reasonable.
TGA also elaborated on the recent collapse on The Forum Group and its exposure having previously loaned the business $2.2 million two years ago.
Thorn said it was “in the process of investigating/ascertaining which of these accounts are valid contracts and which are fraudulent”.
The company is also trying to determine if other contracts were linked to Forum, as its CEO was being investigated by Westpac (WBC) for fraud.
Bill Papas location was not known, but the big four bank accused him of defrauding it of more than $200 million.
Thorn Group’s shares were trading up 1.13 per cent at 21.3 cents each towards the close of market on Friday.