360 Capital drops Evans Dixon takeover

The board of 360 Capital (TGP) opted to let the offer lapse and will not extend it. Evans Dixon (now known as E&P Financial Group, ticker EP1) said that the unsolicited takeover received less than 1 per cent acceptances and was not recommended by its board.

“The 360 Capital board and management team continue to be very focused on delivering our strategy of building out our business of being an investor and manager of alternative assets across real asset, public and private equity and credit,” said managing director Tony Pitt.

“We have several opportunities which we are exploring. Some of the group’s cash can now be deployed into these opportunities.”

360 currently has a relevant interest in 20.22 per cent of shares, a strategic stake for which it has seen “various approaches”.

“We will continue to assess the options available for us to maximise the opportunity for our stakeholders,” 360 said.

The investment manager made its pass at Evans Dixon in late 2020, proposing to acquire all of the shares it did not already own for 40 cents per share before investors faced further value destruction as a result of ASIC proceedings against Dixon Advisory.

“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,” 360 said.

“In making this decision, the board took into consideration the opportunity cost of restricting approximately $60 million of group cash in extending the offer versus other growth opportunities available immediately.”