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Last edited 4 years ago
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#Great Acquisition
stale
Added 4 years ago

Disclosure- I bought SGF when the AFR reported they were going to make the leaseplan acquisiotn-still hold

I know this is not the typical type of stock to get people on this site excited , there is no way SGF is going up 10X!

however, i have followed this company for many years and met mgt many times. The acquisition of Leaseplan is a big move in the fleet mgt industry. consolidation has been mooted for many years due to the large benefits of scale. however, getting a deal and a price proved too difficult until now. we saw both SGF and MMS previously approach ECX to no avail. i think Leasplan/SGF puts them in a powerful position in the fleet mgt industry, putting them well ahead of the competition. even though this will most probably lead to some combination of SIQ/ECX/MMS merging, MMS and SIQ are novated lease companies more than fleet mgt. ECX is a fleet mgt company but any combination will not match the new SGF. Both Leaseplan and SGF parents look to have wanted exposure/increased exposure. i am sure they are aware of the potential benefits. For SGF mgt this is the once in a generation deal to cement the biz in a dominant position, it would surprise me if they drop the ball after years of waiting and planning. i see easily $3.20 and maybe higher.   this is not advice just a humble opinion