Elanor Commercial Property Group’s independent board committee has recommended shareholders reject the 70¢-a-security takeover offer from billionaire Paul Lederer. The committee’s decision, announced Friday, is based on an independent expert opinion from Kroll Australia, which deemed the offer neither fair nor reasonable. The offer valued the fund at approximately $285 million. Elanor Commercial Property Group is an ASX-listed fund specialising in commercial property investments, focusing on properties across Australia. The company aims to deliver sustainable income and long-term capital growth for its investors.
According to committee chairman Ian Mackie, the offer materially undervalues the ASX-listed fund. Mackie stated that the offer fails to provide an adequate premium for control of the fund. He further suggested that Lederer’s move was opportunistic, capitalising on a time when office assets are near a cyclical low and the market is poised for recovery.
Lederer, who already holds a 27.5 per cent stake in Elanor, launched his takeover bid last month. The offer came a week after Elanor unveiled its own $125 million turnaround strategy. This plan aimed to recapitalise the fund manager and avert the risk of suspension from trading on the Australian Securities Exchange (ASX).
The independent board committee’s rejection sets the stage for a potential showdown between Lederer and other shareholders. Investors will now need to weigh the committee’s recommendation against the potential benefits of Lederer’s offer as they make their decisions.
