ScotPac and CML merger off the table
Scottish Pacific will pay $1 million in costs to debtor finance specialist CML Group after the two parties agreed to terminate their scheme of arrangement.
In December 2019, SME lender Scottish Pacific submitted a proposal to acquire non-bank debtor finance specialist CML Group, competing against a merger deal from Consolidated Operations Group (COG).
The Scottish Pacific Group Ltd (ScotPac) deal sought to acquire 100 per cent of the issued share capital of CML – the parent company of Cashflow Finance – for a total cash consideration of $0.60 per share, comprising $0.57 cash per share and permitting a fully franked dividend of $0.03 per share to be paid prior to completion.
It had looked set to progress after CML announced last month that it was to terminate the rival agreement with COG after suggesting that they had “materially breached” the agreement by acquiring a relevant interest in 17.36 per cent of the issued voting shares in CML Group.
However, the two groups have now terminated their scheme of arrangement by mutual agreement.
CML has said it will continue to execute its strategy as an independent company.
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