E&P Financial Group's proposed voluntary delisting from ASX

E&P Financial Group Limited (ASX:EP1) has formally requested to be removed from the official list of ASX, subject to shareholder approval at an Extraordinary General Meeting (EGM) to be held on 24 October 2024. The company cites reasons such as undervaluation, limited trading volumes, cost savings, and strategic opportunities for seeking the Proposed Delisting.

E&P Financial Group's rationale for proposed delisting

The Board of E&P Financial Group Limited believes that the Proposed Delisting is in the best interests of the company due to reasons such as undervaluation of the company's shares, limited trading volumes and liquidity, cost savings, no significant current requirement for capital, strategic and corporate opportunities, and potential impact on employee retention. The company aims to pursue and execute value-enhancing strategic opportunities and corporate transactions following the proposed Delisting.

Consequences and outlook of the proposed delisting

If the Proposed Delisting proceeds, E&P Financial Group's securities would no longer be quoted on ASX, and shareholders would have their CHESS holdings converted to the certified sub-register on the company's register. The company intends to provide liquidity mechanisms for shareholders, including a Buy-Back and a Non-Marketable Parcel Share Sale Facility. Additionally, the company plans to explore potential future capital raising in the form of an entitlement offer. The Proposed Delisting is expected to result in cost savings and provide the company with greater flexibility to pursue strategic opportunities and corporate transactions.