$22m acquisition deal falls over for Consolidated Operations Group
Diversified financial group Consolidated Operations Group (ASX:COG) has pulled the plug on a $22 million deal to buy most of a specialised equipment finance broker.
It is the second such deal to fall over in recent months.
“After detailed due diligence COG have decided to withdraw from the transaction,” the group announced after the market closed on Tuesday afternoon.
“We will continue with the strategy to obtain part or all the equity in equipment finance broking businesses and will remain disciplined in our approach.”
COG withdrew from an agreement to buy 60 per cent of another equipment finance broker in July — although a third similar acquisition deal with Rockhampton-based DLV went through the same month.
COG announced the three deals in April and May.
It has been following a strategy of buying up equipment finance brokers “which represent a good cultural and commercial fit”.
COG’s shares closed at 11.5c on Tuesday, valuing the company at $150 million. The shares have traded between 9.8c and 18.7c over the past year.