Lederer chair 'delighted' after securing 43% stake in Elanor Commercial Property Fund
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More news: Lederer Group chair Paul Lederer said he is "delighted" the family office has secured 42.68% of Elanor Commercial Property Fund (ECF), following the completion of its off-market takeover offer on Monday.
"We launched this emergency offer following disappointment with Elanor’s handling of multiple efforts we made to persuade the board of ECF to take action to protect the interests of all ECF investors," Lederer said.
"As the approximately 43% securityholder in ECF, we believe we are now in a position to drive the necessary changes that will benefit all ECF investors."
Lederer Group, which first became a substantial holder in ECF in 2023 after acquiring a 1.43% stake, is now the fund's largest shareholder.
Lederer said his family office has spoken to a number of existing ECF investors who have "overwhelmingly" expressed concerns about the ongoing underperformance of the fund and the excessive level of fees paid to its parent company, Elanor Group.
"Like many of those we spoke to, we are dismayed by the actions of the Elanor Group Board and the ECF directors (the same people) and will vigorously oppose any plans that are not aligned with the best interests of all ECF securityholders," Lederer said.
"We will hold them accountable for any future mismanagement of the fund and we will investigate the level of fees that have been paid to Elanor over the last five years and identify how much investor capital has been spent in an attempt to entrench Elanor as the manager in priority to the interests of ECF securityholders."
Lederer said ECF had been caught up in recent "chaos" across the Elanor Group, citing the non-release of its 2025 accounts, "inherent conflicts of interest" across the ECF and Elanor boards, and the "material underperformance" of both ECF and a number of Elanor Group's other funds over the last 12 months.
Given the family office has secured under 50% of shares, under its bidder's intentions, this means it will look to maximise returns. This could include disposing its securities or making further acquisitions.
Elanor Group has previously said that Lederer Group's proposal to replace ECF's responsible entity and investment manager constitutes a breach of the term sheet between the two companies. In its bidder's statement, Lederer Group said that its plans to make changes to the fund — in the event of acquiring less than 50% of its shares — may consequently be impacted or delayed if Elanor seeks to enforce the term sheet.
Lederer Group takeover offer for Elanor Commercial Property Fund closes with 43% interest
The news: Lederer Group has secured 42.68% voting power in the Elanor Commercial Property Fund after the close of its hostile takeover bid.
The numbers: Before Monday trade began, Lederer had a 35.82% interest in ECF but this later expanded to 42.68%, according to an ASX filing.
Lederer Group had a 27.5% interest at the announcement of its initial takeover bid in early August.
Stapled security holders that accepted the offer on or before 26 September were paid 70 cents. Those who accepted the offer after 26 September have been paid 68.375 cents, which deducts the value of a September quarter distribution.
The context: The Lederer's takeover offer closed on 13 October at 7pm Sydney time. Both the suitor and the target exchanging critical commentary since August.
The source: ASX
