360 Capital reveals takeover plans for Evans Dixon

In a bidder’s statement released to the market, 360 Capital outlined its proposal for the takeover of E&P Financial Group (EP1), formerly known as Evans Dixon.

The offer was originally announced late last year by 360 Capital (TGP), which offered to buy E&P at 40 cents per share plus one TGP stapled security, but the group has since upped the offer to an “implied value” of 66 cents per share.

TGP said as an investment management business, it was primarily interested in holding onto the managed funds within EP1.

“Following completion of compulsory acquisition, TGP intends to review E&P’s structure and operations with a view to undertaking a restructure,” the investment manager said.

“TGP intends to split E&P into two separate businesses: a funds management business and a wealth and capital markets business. 

“TGP intends to retain 100 per cent ownership of the funds management business and intends to offer to sell 40 per cent to 80 per cent ownership interest in the wealth and capital markets business to a third party partner, which may include management and staff or institutional investors.”

TGP said it had been approached by “a number of parties” with a view to buying parts of the E&P business, but discussions were “not able to be progressed” until the proposed acquisition had taken place.

E&P rebranded from Evans Dixon in October last year, following the news that its advice subsidiary Dixon Advisory and Superannuation Services was being pursued by ASIC for alleged conflicts of interest and best interest duty breaches.

The investment manager said if the takeover was accepted by E&P shareholders, the group would be delisted and its directors replaced by those selected by TGP.

E&P said it was preparing a formal response to the bidder’s statement and that it was “committed to acting in the best interests of all shareholders”.

“E&P reiterates that shareholders should take no action in respect of the unsolicited offer from TGP until they have had the opportunity to fully consider both E&P’s target’s statement and the bidder’s statement,” E&P said.

“As the unsolicited offer must remain open for at least one calendar month from its commencement, E&P shareholders will have ample time to make a decision after they have received the target’s statement.”