McMillan (ASX: MMS) & Eclipx (ASX: ECX) announce merger plans
Stock
Eclipx (ECX) $2.74 & McMillan Shakespeare (MMS) $16.18 as at 08/11/2018
Event
The two vehicle leasing and fleet management companies entered trading halts before market this morning and have since released a merger proposal that has been backed by the boards of the two companies. The offer for ECX shareholders is 0.1414 MMS shares as well as a $0.46 cash component – representing $2.85 value as at yesterday’s close price, a solid 33% premium to the last ECX traded price. McMillan’s earnings are dominated by the salary package and novated leasing business, while Eclipx’s strength lies with the fleet management side.
The combined business will have the largest Fleet management and the largest novated leasing businesses by units in Australia & New Zealand, and is expected gain $50m of EBITDA synergies per year after the first three years.
Eclipx (ECX) Chart
McMillan Shakespeare (MMS) Chart
Market Matters Take/Outlook
