Eclipx keeping this quiet, page-3

And now this . . .

AFR today

Take a bow, McMillan Shakespeare.
While all the attention is on novated leasing rival and takeover target Eclipx and its suitor SG Fleet, McMillan Shakespeare is emerging as the most capable industry consolidator.
And from what we hear, McMillan Shakespeare is a much better chance of funding an offer big enough to win over Eclipx shareholders, and is in a better position to get in the front door and navigate the "soft" sort of issues that emerge in every takeover situation.
It has the market's backing for such a move and after only two down days in the past 4 weeks it also has powerful scrip. The question is whether it has the ambition.

McMillan Shakespeare has an estimated 10 per cent of the Australian corporate and novated leasing market with a much bigger presence in novated leasing. Eclipx has 12 per cent of the combined market with a stronger presence in corporate leases.

Putting the two together could add another $800 million a year revenue and $135 million EBITDA to McMillan Shakespeare's profit and loss statement, without accounting for any synergies.
Fundies reckon McMillan Shakespeare could put together a scrip heavy deal at a 20 per cent to 30 per cent premium to Eclipx's last close, and offer Eclipx shareholders a share of the upside.
The deal would be made possible by McMillan Shakespeare's strong share price run - which has occurred around its results and is the sort of run that has reminded some of TPG Telecom's recent rise - which has its shares trading at 15.6-times forecast 2019 financial year profit. Eclipx is trading at 9.9-times forecast profit.​

Unlike SG Fleet, McMillan Shakespeare has a reasonably open share register and does not have a controlling shareholder keen to keep its stake above 50.1 per cent.