Elanor says Lederer Group made 'inaccurate assertions' regarding board oversight
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The news: Elanor Funds Management is considering its response to the Lederer Group's takeover offer for its listed commercial property fund, "including in respect of a number of inaccurate assertions made by the Lederer Group".
The numbers: On Monday, the Lederer Group proposed to acquire all of the Elanor Commercial Property Fund (ECF) for 70 cents in cash for each stapled security it did not currently own.
Lederer proposed a takeover as it was dissatisfied with the lack of accountability and oversight by the Elanor board, which had led to its suspension from the ASX and insolvency risks.
Lederer Group currently has a 27.5% interest in the fund.
ECF shares closed at 68 cents on Thursday.
The context: Elanor also said it had established an independent board committee (IBC) to manage any potential conflicts on interest that could arise between the interests of Elanor Investors Group and the interests of the fund’s securityholders.
The board is composed of the company’s independent directors Ian Mackie and Kathy Ostin.
It has also established a separate board committee to represent the interest of Elanor in connection with the takeover offer.
What they said: “The ECF IBC is actively evaluating the takeover officer, including assessing the terms, strategic implications, and undertaking a thorough independent analysis to determine its impact on ECF securityholder value," Elanor said.
The source: ASX
