Vote solid for Thorn demerger
Saturday 17 August 1996
The vote was carried by a show of hands at a well-attended extraordinary general meeting in London. Some 90 per cent of proxies also voted in favour.
Shares in the two businesses will start trading on Monday. Shares in the larger EMI group, which will include the HMV records chain, are expected to start trading at around pounds 14. The smaller Thorn division, which includes the Radio Rentals and Crazy George's businesses, is expected to see its shares open at around 410p.
As a result of the demerger, Thorn EMI will disappear from the FT-SE 100 list of leading shares, but both of the demerged businesses will join the top tier. Cookson, the engineering and ceramics group, will be removed to make way.
On its last day of trading Thorn-EMI shares rose strongly, finishing the day 44p higher at pounds 18.33.
Addressing shareholders at the meeting, Thorn-EMI chairman Sir Colin Southgate said he expected shares in EMI group would be "very highly rated" when they start trading. "If not, I'll be very disappointed."
Some shareholders questioned the wisdom of the de-merger, but Sir Colin said it would unlock shareholder value. He said both businesses would grow faster outside of the group. "Thorn will come out from under the umbrellas of EMI, which is a glamourous business. It will develop its own strategy and strengths and drive forward faster."
Sir Colin also told the meeting that adviser fees for the de-merger had totalled pounds 70m - a relatively small sum for a company valued at pounds 8bn, he said.
Some analysts regard the EMI business as a takeover target at a possible figure of pounds 20 per share. The Thorn rental business is, however, earmarked for more pedestrian growth.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Nick Kyrgios calls former Olympian Dawn Fraser a 'blatant racist' after she tells Wimbledon star to 'go back where their parents came from'
- 3 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
- 4 The Greece debt crisis explained in less than 100 words
- 5 Cristiano Ronaldo storms out of interview after being asked about possible sale of Manchester United target Sergio Ramos
Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Eiji Tsuburaya: Godzilla co-creator honoured in today's interactive Google Doodle
Bakery sends 'horrific' version of Frozen-themed birthday cake to unsuspecting customer
Florida teacher sentenced to 22 years in prison for sexually abusing three pupils
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...