E&P Financial Group's proposed delisting and buy-back

E&P Financial Group Limited (ASX:EP1) has announced its proposal for delisting from the official list of ASX and conducting an equal access buy-back of up to $25 million. The company also intends to raise $12.5 million through a conditional placement to wholesale investors. The extraordinary general meeting of Shareholders, initially scheduled for 24 October 2024, has been postponed to 1 November 2024 to allow shareholders to consider the additional information provided in the Supplementary Disclosure Letter.

Executive commentary on proposed delisting and buy-back

The purpose of the proposed delisting and buy-back is to provide shareholders with a pre-delisting liquidity opportunity and to address the current illiquidity of the company's shares traded on ASX. The Board aims to ensure that all shareholders have the right and opportunity to vote on the significant resolution. The company does not have the financial resources to execute the $25 million buy-back without additional capital, hence the conditional placement to raise the necessary funds. The Board has unanimously decided to decouple the placement from the proposed delisting to ensure that all shareholders have the opportunity to vote on this significant resolution.

Summary of proposed delisting and outlook

E&P Financial Group's proposed delisting and buy-back aim to provide shareholders with a pre-delisting liquidity opportunity and address the current illiquidity of the company's shares traded on ASX. The company intends to operate in an unlisted environment with similar principles of transparency, accountability, and ethical conduct. It plans to maintain rigorous governance practices and engage with stakeholders to uphold their interests. The Board also intends to commission an independent valuation of the company's shares and consider potential mechanisms to provide shareholders with periodic access to liquidity following the proposed delisting. The company's dividend policy and NPATA are expected to remain unchanged, with the Board restating its commitment to targeting a dividend payout ratio of 75-85% of NPATA in a normal operating environment.