Engenco Takeover Offer Goes Unconditional as Elph Hits 92.68% Stake
Elph Investments has secured a 92.68% stake in Engenco, making its 31-cent takeover offer unconditional and prompting the board to urge shareholders to accept before the June 27 deadline.
- Elph Investments acquires 92.68% of Engenco shares
- Takeover offer at 31 cents per share now unconditional
- Engenco board unanimously recommends acceptance
- Offer closes on 27 June 2025 unless extended
- Employee Share Purchase Plan shares unlocked for acceptance
Elph Investments Secures Controlling Stake
Elph Investments Pty Ltd has crossed a critical threshold in its bid for Engenco Limited, acquiring a relevant interest in 92.68% of the company’s shares. This milestone renders the takeover offer unconditional, effectively paving the way for Elph to compulsorily acquire the remaining shares it does not yet own.
Board Urges Shareholders to Accept Offer
The Engenco board, led by Chairman Vincent De Santis, has issued a strong recommendation for shareholders who have yet to accept the offer to do so promptly. The directors argue that shareholders stand to benefit more by accepting the 31 cents per share offer now rather than waiting for the compulsory acquisition process to conclude, which can be protracted and uncertain.
Employee Shares Now Eligible
Notably, the holding lock restrictions on shares issued under Engenco’s Employee Share Purchase Plan have been lifted. This development allows employees who hold these shares to participate in the offer, potentially increasing the acceptance rate ahead of the closing date.
Next Steps and Market Implications
The offer is set to close at 7.00pm Melbourne time on 27 June 2025 unless Elph Investments decides to extend it. With over 92% already secured, the compulsory acquisition of remaining shares appears imminent, which could lead to Engenco’s delisting from the ASX. Market watchers will be closely monitoring final acceptance levels and any announcements regarding an extension or post-offer strategy.
Bottom Line?
As Elph nears full ownership, Engenco’s future as a public company hangs in the balance.
Questions in the middle?
- Will Elph Investments extend the offer beyond 27 June 2025?
- What strategic changes will Elph implement post-acquisition?
- How will the market react once compulsory acquisition is completed?