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- CML Group (CGR) has decided to terminate its scheme implementation agreement with Consolidated Operations Group (COG) and sign a deal with Scottish Pacific Group
- Last November, COG and CML agreed to a proposed merger to create a leading financial service group
- CML says the contract was cancelled due to a material breach by COG
- The company announced today that it has signed a deal with Scottish Pacific Group
- Scottish Pacific will purchase all of the shares of CML at 60¢ per share
- CML is up 4.72 per cent on the market today, trading at 56¢ per share, while COG is down 1.10 per cent, selling shares for 9¢ apiece
CML Group (CGR) has decided to terminate the scheme implementation agreement with Consolidated Operations Group (COG) and sign with Scottish Pacific Group.
Last November, COG and CML agreed to a proposed merger to create a leading financial service group, focusing on servicing small and medium enterprises (SME) businesses in Australia.
CML says the contract was cancelled due to material breach by COG, from COG’s on market purchase of shares in CML as well as other matters.
Under the scheme, CML has requested a payment of $500,000 to break free from COG.
“CML will apply to the Court for orders to cancel the scheme meeting in respect of the scheme with COG,” the company told the market.
The company announced today, that it has signed a deal with Scottish Pacific Group. Scottish Pacific will purchase all of the shares of CML at 60¢ per share.
The Board has unanimously recommended that CML shareholders vote in favour of the new offer.
“Each member of the CML Board intends to vote, or procure the voting of, all shares they hold or control in favour of the Scheme with Scottish Pacific,” the company said.
Major shareholder, First Samuel, who control 17.7 per cent of CML’s shares, has told the company it will vote in favour of the new scheme.
CML is up 4.72 per cent on the market today, trading at 56¢ per share, while COG is down 1.10 per cent, selling shares for 9¢ apiece at 1:00 pm AEDT.
