Elanor Commercial Property Fund (ECF), an externally managed real estate investment trust that invests in Australian commercial office assets, has responded to the unsolicited takeover offer from Lederer Group. The Independent Board Committee of ECF (ECF IBC) has unanimously recommended that securityholders reject the offer of $0.70 cash per security, citing that it is not sufficiently beneficial. The ECF IBC deems the offer as opportunistic and materially undervaluing ECF.
The ECF IBC will prepare a Target Statement including a detailed analysis of the offer and the formal recommendation to securityholders. In the meantime, ECF securityholders are advised to take no action regarding the offer or any documents received from the Lederer Group. The committee considers the offer not compelling, failing to provide a suitable premium to ECF’s net tangible assets (NTA) or an appropriate premium for control. It also denies securityholders future distribution entitlements and is opportunistically timed near the bottom of the market cycle.
ECF believes it has a high-quality portfolio of commercial property assets and has provided a strong distribution and income stream to securityholders. The fund has outperformed comparable office A-REITs since its IPO. The ECF IBC has appointed Ord Minnett Corporate Finance as independent financial adviser, and Arnold Bloch Leibler as legal adviser.
Investor enquiries can be directed to Ian Mackie at Elanor Funds Management Limited, and media enquiries to Jack Gordon at Sodali & Co. This announcement has been authorised for release by the ECF IBC.
