Elanor Commercial Property Fund rejects Lederer Group takeover bid

The Elanor Commercial Property Fund (ECF) independent board committee (IBC) has recommended that securityholders reject the Lederer Group’s $0.70 per security takeover offer, asserting it is “unsolicited, opportunistic and materially undervalues ECF.” The IBC advises securityholders to "TAKE NO ACTION" regarding the offer or any related documents.

The IBC views the offer as not compelling, materially undervaluing ECF, and failing to provide a suitable premium to ECF's net tangible assets (NTA) or for control. The offer's 1.4% premium to ECF’s current NTA of $0.69 is significantly below the median premium of 18.5% observed in comparable ASX-listed REIT transactions since 2015.

Furthermore, the IBC highlighted the offer as "opportunistically timed at or near the bottom of the cycle," denying securityholders the opportunity to participate in an expected recovery in office valuations and future distribution entitlements. The ECF IBC expressed concerns over Lederer Group’s lack of a track record in managing ASX-listed A-REITs and the potential for reductions in future dividend distributions under new leadership.