Elanor Commercial Property fund shares lift after Lederer Group lobs takeover bid
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More news: Shares in Elanor Funds Management’s listed commercial property fund lifted in afternoon trade following the announcement that family office Lederer Group has offered to buy out the 72.5% interest it does not already own.
Shares in the Elanor Commercial Property Fund lifted 1.8% to 68 cents by 1:53pm AEST.
Elanor Commercial Property fund receives takeover offer from family office Lederer Group
The news: Elanor Funds Management’s commercial property fund has received an off-market takeover offer by the Lederer Group, a large Australian family office.
Lederer said the offer was due to the lack of accountability and oversight by the Elanor board which had led to its suspension from the ASX and insolvency risks.
The numbers: Lederer Group currently has a 27.5% interest in the fund.
Under the offer, Elanor Commercial Property fund unitholders would receive 70 cents cash for each stapled security. This represents a 5.3% premium to the last closing price of 66.5 cents and a 21% premium to the fund’s equity raise in October 2024.
The context: The Lederer Group said it was deeply concerned about the current state of play and the likely impact the Elanor’s actions would have on Lederer Group’s investment and other unitholders.
Its key concerns included:
- Lack of accountability by the board for lack of oversight that led to Elanor’s suspension from the ASX and insolvency risks;
- Lack of transparency around why Challenger Life’s translation had been unwound; The impact of the loss of Challenger Life mandate on staff within Elanor;
- Rockworth Capital Partners and Su Kiat Lim collectively owning 61.5% of the diluted issued capital of Elanor and board influence; and
- Concerns around Elanor’s desire to become a pan Asian funds manager and risks that it becomes a pan Asian vehicle with substantially changed asset holdings and exposures.
What they said: Lederer Group chair Paul Lederer said: “There is an expression: enough is enough. Challenger is leaving Elanor for a reason. I do not believe Elanor’s obsession with saving itself at any cost is good for ECF investors or the industry.
“I want ECF investors to know: I have been listening to you. If you want to sell your ECF securities, I will buy them at the best price they have traded in the last 12 months and it is my pleasure to provide this assistance to you. If you continue to invest alongside me, I promise you that my team and I will spend every day thinking about how to make YOU money.”
The source: ASX
