E&P Financial Group shareholders vote on de-listing
Dixon Advisory parent company E&P Financial Group has confirmed it will be delisting from the ASX after shareholders narrowly voted in favour of the move.
The wealth management firm first announced in September that it had formally requested to delist from the ASX.
The proposal was expected to be put forward for shareholder approval at an extraordinary general meeting (EGM) on 24 October 2024, and required 75 per cent of votes to be cast in favour of the delisting. This was then delayed by a week to 1 November.
The result of the EGM today shows that shareholders narrowly voted in favour of the ASX delisting, with a 76 per cent majority vote in the special resolution, according to an ASX announcement. The removal is expected to occur on 27 December 2024, E&P stated.
“The company reminds shareholders that if they wish to sell their shares on the ASX, they will need to do so before the company is removed from the official list.”
Explaining the reasons behind the decision in September, the firm said: “The EP1 board has concluded that the benefits of being listed on the ASX are materially outweighed by the potential benefits of delivering the next phase of growth in an unlisted environment.”
It particularly highlighted a “sustained negative impact on the EP1 share price as a result of regulatory proceedings and class action litigation. Notwithstanding the resolution of these issues, the lack of support for the equity market remains”.
However, the Financial Advice Association Australia’s general manager for policy, advocacy and standards, Phil Anderson, recently argued that the delisting of E&P will not stop the company coming under scrutiny in the inquiry into Dixon Advisory.
An inquiry into Dixon Advisory was proposed in September, and the Senate economics references committee is scheduled to report by the last sitting day in March.
Anderson said: “Their message seems to be that their share price has gone south, they don’t think it’s got prospects of going up anytime soon, no one likes them and they’ve carried too much of the glare from all this regulatory and class action stuff.
“I don’t think they will avoid scrutiny. I think there will be less scrutiny going forward if they are not required to report to the ASX. But in terms of this parliamentary inquiry, it doesn’t matter if they are listed or not. The Senate economics committee will, as a result of these terms of reference, be having a very close look at the action of Dixon Advisory and therefore its parent company E&P Financial Group.”
AUTHOR
Jasmine Siljic
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