Thorn Group sells consumer finance division

Database and intellectual property.

Thorn Group Limited has sold its consumer finance division, trading under the Cashfirst brand, to Credit Corp Group for a total consideration of $13.3 million. The consideration is attributable to the loan book of almost 5,000 current Cashfirst customers. Credit Corp is also acquiring the historical customer database and all Cashfirst branding and intellectual property.

In a statement to the ASX, Thorn Group said, “The sale was the result of a tender process in order to ensure that the best market price at this time could be realised. The net proceeds on completion, after transaction costs, approximate to the division’s net asset value. The assets sold do not include the division’s small solar loan book which remains in run-off at this point.

“The sale will immediately release the capital held in the loan book, removes the cost and distraction for Thorn in continuing to collect on the book, and the proceeds will be used to repay debt.”

Credit Corp CEO, Thomas Beregi said the transaction would positively impact earnings in fiscal 2018 and 2019. “The acquisition of the loan book will produce an acceptanble return and the other assets will enhance this. The transaction demonstrates our ability to use our unrivalled financial capacity to seize unique opportunities, while exercising investment discipline in an environment of elevated pricing in the traditional domestic debt purchasing market.”

Credit Corp will offer its lending products to past and present Cashfirst customers, which will improve market efficiency and enable consumers to avoid higher cost, often predatory, alternatives.

Tags: ,

Leave a Reply

Your email address will not be published. Required fields are marked *

*