The directors of Westlawn Finance Limited (Westlawn) are excited to introduce a significant new business partner in Consolidated Operations Group Limited (COG).
An agreement has been reached whereby COG will acquire a 32% interest in Westlawn via an issue of new capital totalling $14m (comprising $10m cash and $4m COG shares). This has immediate and significant benefits for Westlawn as it will;
1. Increase share capital by approximately $10m to $32m
2. Increase the capital ratio to over 14% (representing a 6% buffer on the ASIC benchmark of 8%)
3. Strengthen the balance sheet and provide greater investor security
4. Provide a new shareholder with substantial financial resources
5. Provide ongoing and new synergistic business opportunities
COG is an ASX listed company with a current market capitalisation of approximately $136m and net assets of almost $200m. COG is Australia’s largest equipment finance broker aggregation group via a network of independent and equity owned finance brokers and in FY2018 financed $3.35bn.
The managing director of COG, Mr Cameron McCullagh, will join the board of Westlawn and bring with him a wealth of financial services experience.
Importantly, a 68% majority interest in Westlawn will continue to be closely held by the local Dougherty family as it has been for the past 50+ years. The business will continue to operate as it currently is with the existing local management and staff structure. The Dougherty family see this as a hugely positive step, not just for the business but for our many customers and over 100 employees.
This transaction represents a significant milestone in the history of Westlawn which will ensure that it continues to grow and prosper for many years to come.
If you have any queries please don’t hesitate to contact your local branch by phoning 1300 WESTLAWN (1300 937 852)