- Consolidated Operations Group (COG) is willing to increase its proposal to purchase CML Group
- On Monday, CML cancelled its scheme implementation agreement (SIA) with COG and entered into a new agreement with Scottish Pacific
- COG has submitted a new proposal of 57¢ per CML share plus a three-cent special dividend
- The company also said it will be voting no to the scheme with Scottish Pacific
- On the market this morning, COG remains steady, trading at 9¢ per share, while CML is down 2.65 per cent, trading at 55¢ apiece
Consolidated Operations Group (COG) is willing to increase its proposal to purchase CML Group (CGR).
On Monday, CML cancelled its scheme implementation agreement (SIA) and entered into a new agreement with Scottish Pacific.
COG says it’s in discussions with CML’s entitlement to terminate the agreement.
Yesterday, the Federal Court of Australia made orders that the CML Scheme Meeting will be called off due to the termination.
COG also submitted a new proposal to the Federal Court, in which it increased its original offer. The new offer is now at 57¢ per CML share plus a three-cent special dividend.
The proposal matched the initial value of the original offer by Scottish Pacific.
COG said late last week, the companies were negotiating details of the proposal and COG believed they were coming to an agreement shortly. However, CML’s announcement took the company by surprise.
“COG believes the merits of its increased proposal remain compelling,” the company told the market.
With this new proposal, shareholders would also be given an opportunity to receive a proportion of cash while continuing to obtain benefits in a merged COG/CML in the future through a COG shareholding.
Under the Scottish Pacific proposal, CML shareholders won’t get this opportunity.
“The CML board has allowed Scotpac [Scottish Pacific] almost three months to produce a binding offer that is no greater in value than the implied value of the revised offer proposed by COG, and the Scotpac offer remains highly conditional and not certain of being completed,” COG said.
The company also said it does not intend to vote its 17.4 per cent interest in the scheme with Scottish Pacific.
On the market this morning, COG remains steady, trading at 9¢ per share, while CML is down 2.65 per cent, trading at 55¢ apiece at 11:46 am AEDT.