Sandon said today:"During the month Consolidated Operations...

Sandon said today:
"During the month Consolidated Operations Group Ltd (COG) announced a scheme of arrangement with CML Group Ltd (CGR). This was a pleasant surprise following the disappointing rejection by Thorn Group of COG’s offer for Thorn Business Finance. The merger is beneficial to the shareholders of both companies, as each brings something to the table the other does not have. For CGR, it gains access to COG’s aggregation platform used by nearly 5000 brokers, which should broaden the potential market for its invoice factoring and discounting products and services. For COG, it acquires the aforementioned products as well as access to CGR’s warehouse facilities, which should help diversify its funding sources and reduce interest costs. It should also help accelerate its product development pipeline. COG’s value remains largely unrecognised, despite it owning the largest broker and aggregator network in Australia. Following the merger, if approved, we expect double digit earnings per share growth.