Compelling reasons to combine Skilled Group and Programmed Group
Skilled Group (SKE) (+11.6%) outperformed during the month after it agreed to re-engage with its previously rebuffed suitor, Programmed Group (PRG). SKE and PRG operate very similar labour hire businesses and there are compelling reasons (including significant cost synergies) to combine the two companies. SKE is back at the negotiating table after PRG agreed to discuss “enhanced terms” to the previous scrip for scrip merger deal which was earlier viewed by the SKE board to be inadequate. We believe both parties are highly motivated to agree terms and shareholders in both companies will benefit should a deal indeed be reached.
OC Funds Management (OC) is a boutique small cap specialist which was founded by its investment staff and non-executive directors. OC commenced operated in December 2000 with the launch of two long only small cap Australian equity funds, the OC...
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