E&P vultures hide the CD Funds carcass but will it work?

The latest post is up on the blog: https://cdprivateequityfundinsights.blogspot.com/

Direct post: https://cdprivateequityfundinsights.blogspot.com/2023/03/e-vultures-hide-cd-funds-carcass-but.html

Important action required by investors to email [email protected] and insist they work toward a shareholder vote on the best merger proposal they can negotiate. You can include a link to the above post if you agree with it.

Excerpt:

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After the resounding defeat of E&P's merger proposal in Oct 2022, Pengana put forward an original bid for the CD funds in Dec 2022 and then an enhanced offer in Feb 2022: proposing to merge the CD funds with PE1 (Pengana's private equity fund) with CD investors receiving PE1 shares but taking a haircut on the exchange value and also having to wait 18 months to sell the PE1 shares (those selling early wouldn't receive up to 15% of the shares).

E&P rejected the improved offer, has not allowed due diligence access to Pengana to review details of the CD funds, and is not currently participating in active negotiations to complete a deal.

However, virtually all significant investors in the CD funds (the Directors are not) and the majority of shareholders would be seeking their Directors to actually represent their interests:

- Proactively facilitate merger bids from all interested parties in a transparent, competitive way. We want to leave E&P's incompetent management!

- Provide due diligence access to suitable bidders like Pengana as the value of the portfolio companies, cash holdings and current fee arrangements (CD1 and CD2 paying no GP or performance fees) can only improve the bid value.

- Maintain friendly negotiations with all potential bidders with a firm view to finalising a merger proposal with whoever has the best offer, as 75% of shareholders still have to vote for it. Then leave it up to us shareholders to decide!
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