.Time's almost up on due diligence for private equity-backed Scottish Pacific, which has been running the numbers on takeover target and debtor finance specialist CML Group for the past two months.
Scottish Pacific will lob a binding bid at CML Group next week. AFR
Street Talk understands Scottish Pacific had its advisers working through the weekend and is preparing to lodge a binding bid for CML next week. And the numbers on its offer haven't changed materially.
Scottish Pacific, which is owned by Affinity Equity Partners, lobbed an indicative, non-binding takeover bid for ASX-listed CML on December 11, to acquire 100 per cent of its issued share capital for a total cash consideration of 60¢ a share.
The bid came about a month after the country's largest equipment finance broking company Consolidated Operations Group entered into a scheme of implementation agreement to merge with the $117 million CML.
Scottish Pacific's bid was more attractive than COG's 51¢ a share offer and so CML's board allowed due diligence to be conducted.
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COGConsolidated Operations Group
$0.090.00View COG related articlesMar 19Jun 19Sep 19Dec 190.070.080.090.100.11Updated: Feb 11, 2020 — 11.18am. Data is 20 mins delayed.AdvertisementA speed bump for Scottish Pacific is the blocking stake COG picked up in January, when it purchased 17.36 per cent of CML in a block trade executed by Petra Capital.
However, this stake doesn't necessarily guarantee COG the ability to block any binding bid put forward by Scottish Pacific.
It will all come down to how many shareholders show up at the meeting to vote on Scottish Pacific's offer, which would need a 75 per cent swing in favour to get it over the line.
