Elanor Secures ASX Waiver to Extend Timeline on $125M Rockworth Recapitalisation

ASX Waiver Facilitates Strategic Recapitalisation

Elanor Investors Group (ASX, ENN) has secured an important waiver from the Australian Securities Exchange (ASX) that allows it to extend the deadline for issuing new securities related to its ongoing recapitalisation. The waiver relaxes Listing Rule 10.13.5, permitting Elanor to issue Consideration Securities within three months following securityholder meetings, rather than the usual one-month timeframe.

This regulatory flexibility is critical as Elanor works to complete a significant recapitalisation deal with Singapore-based Rockworth Capital Partners. Rockworth is set to invest up to A$125 million into Elanor, a move designed to stabilise the real estate investment group’s balance sheet and reduce its gearing ratio to a more sustainable 20-35% range.

Navigating Regulatory Complexities

The extended timeline addresses the uncertainty surrounding regulatory approvals required for Elanor’s acquisition of Firmus Capital Pte. Ltd., a Singaporean entity held by Su Kiat Lim. These approvals, which are beyond Elanor’s control, could not be guaranteed within the standard one-month period post-securityholder meetings. By obtaining the waiver, Elanor ensures it can proceed with issuing securities to Su Kiat Lim or his nominee Laville Pte. Ltd. once all regulatory hurdles are cleared.

Elanor has committed to providing full disclosure of the number of securities to be issued and their dilutive impact in the notice of meetings sent to securityholders. This transparency allows investors to make informed decisions regarding the recapitalisation and its implications.

Strategic Alliance and Growth Prospects

The partnership between Elanor and Rockworth, which began in 2019, reflects a strategic alliance focused on capitalising on growth opportunities across Australia and Asia Pacific real estate markets. Rockworth’s expertise and substantial assets under management complement Elanor’s diversified portfolio spanning commercial office, retail, industrial, and healthcare sectors.

This recapitalisation is a pivotal step for Elanor, aiming to strengthen its financial position and unlock further value in its real estate assets. The injection of capital and reduction in gearing are expected to enhance Elanor’s capacity to pursue new investments and deliver sustainable income and capital growth for its securityholders.

Next Steps for Securityholders

Elanor will soon convene meetings to seek securityholder approval for the issuance of Consideration Securities under Listing Rule 10.11. The outcome of these meetings, combined with the regulatory approval process, will determine the timing and completion of the recapitalisation. Investors will be watching closely for updates as Elanor navigates these final stages.