Thorn Group (ASX:TGA) share price closes 6% lower as it goes ex-dividend

The takeover target will pay a final dividend to shareholders on 21 July.

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The Thorn Group Ltd (ASX: TGA) share price closed 6.67% lower at 21 cents. This came as shares in the household goods operator went ex-dividend today.

Let’s take a look at what investors can expect with the company’s dividend.

Thorn Group dividend summary

Thorn Group will pay shareholders a fully franked 1 cent per share final dividend on 21 July.

At the current share price of 21 cents, the dividend yield of the 1 cent payment is 4.44%.

The company reinstated the dividend distribution schedule from October 2020, after it was periodically terminated in January 2018.

Prior to this, the company had made good on each payment from December 2012 to January 2018.

Time extension on target statement

Yesterday, Thorn Group released a statement referring to the unsolicited on-market takeover offer made by Somers Limited on 18 June.

Somers has offered to acquire all shares in Thorn that it does not already own for 21 cents per share all cash.

In the statement, Thorn outlined it had received a declaration from the Australian Securities and Investments Commission (ASIC) granting an extension of time to provide its target’s statement in respect of the offer.

Thorn states the extension permits the company to include an independent expert’s report, and the target’s statement shall be made to the ASX, ASIC and Somers and Thorn shareholders on or before Friday 16 July 2021.

Thorn has confirmed it will provide the documentation on or before this date.

In the statement, Thorn said:

Thorn reiterates its previous recommendation that shareholders TAKE NO ACTION in relation to the Offer
until they have received and considered Thorn’s target’s statement.

Thorn Group share price snapshot

The Thorn Group share price is around 13% in the green this year-to-date. Over the previous 1 month, Thorn’s share price has increased 2.38%.

This week, the Thorn share price is 2.27% in the red, and on a current share price of 21 cents, Thorn Group has a market capitalisation of $75.9 million.

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