360 Capital has dropped its plan to acquire ASX-listed E&P Financial Group.
TGP's offer to acquire 78.78% ordinary shares of E&P Financial Group closed at 7pm yesterday. In ASX filings this morning, 360 Capital said its board has decided to let the offer lapse, and has not extended it.
ED1 said the unsolicited takeover received less than 1% acceptances.
TGP attributed the change in its position to E&P Financial Group's co-investments, and the opportunity cost of restricting $60 million of TGP's cash to the Evans acquisition.
|Sponsored by Eaton Vance|
Eaton Vance: Active vs. Passive in EMD
"Post 31 December 2020 reporting, some of EP1's co-investments have suffered significant falls in share price which, if they do not correct, will have to be accounted for in its 30 June 2021 results," TGP said in April 1 ASX filings.
"In making this decision, the board took into consideration the opportunity cost of restricting approximately $60 million of group cash in extending the offer verses [sic] other growth opportunities available immediately."
360 Capital group managing director Tony Pitt said some of group's cash can now be deployed into alternative asset opportunities across real assets, public and private equity, and credit.
The ASX-listed 360 Capital first appeared on Evans Dixon's shareholder register after the FY20 results (statutory loss of $30.5 million), and co-founder Alan Dixon's departure.
TGP has since built a 20.22% shareholding in EP1 (which it still owns after today's announcement).
Tony Pitt was first endorsed for election to EP1's board who reversed their recommendation after the initial October 27 bid.
The company's original offer was conditional on EP1's shares/options plan not getting through at the AGM - but the resolution passed. In December 2020, 360 raised its offer for EP1 shares by 13% to 60 cents per share.