Resimac moves to buy Thorn’s asset finance portfolio

Financial services group Thorn Group Limited (Thorn) has announced it has entered into an agreement with Resimac Group Limited (Resimac) for the sale of Thorn’s Asset Finance Portfolio.

The deal, which will see Thorn receive around $15 million cash proceeds for its $150 million portfolio of commercial asset finance loan receivables, still requires shareholder approval (and a Thorn general meeting is expected to be held on 28 August 2023 to vote on the matter).

However, if approved, it will see Resimac buy the majority of the asset finance portfolio from Thorn subsidiaries Thorn Australia Pty Ltd (TAPL) and Thornmoney Pty Ltd (Thornmoney) for Resimac Asset Finance (RAF).

RAF will then acquire each of TAPL and Thornmoney’s respective interests in the rights, title, and interest of their respective loan books and relevant units and Class G notes in the securitised warehouse trust.

The two groups are expected to complete the sale at the end of August 2023, with transitional services continuing for a three-month period until 30 November 2023.

According to Resimac chief executive Scott McWilliam, the transaction “supports the strategic growth objectives of Resimac’s Asset Finance division”.

Indeed, it followed a number of successful business and portfolio acquisitions Resimac has undertaken, including its move to gain a controlling stake in Sonder Equipment Finance.

Thorn has reportedly been working to diversify its business by growing its offerings in the fintech sector and said the sale would help provide value for shareholders.

Speaking of the deal, the deputy chair of Thorn (and chair of the independent committee overseeing the asset finance sale), Paul Oneile, commented: “This is a good outcome for our shareholders given the challenges of developing the business to scale and the uncertainties arising from the current economic environment.

“We have been able to reach transition arrangements that provide certainty of next steps over the coming months and ensure value for our shareholders.

“We consider the time is right for Thorn to progress with its strategy. We will be focusing on further opportunities, including new strategic investments in the non-banking financial services and wealth management sectors.

“Thorn is well capitalised to progress these opportunities.”

[Related: Resimac takes controlling stake in Sonder]

Written by Annie Kane

Last Updated: 21 June 2023

Published: 21 June 2023