Action urged on Ebos offer
Ebos Group is urging shareholders to take up share entitlements as part of a $149 million capital-raising to help it buy an Australian company.
Shareholders in the hospital and healthcare products supplier can buy seven new shares at $6.50 each for every 20 they own in a renounceable entitlement.
The $149m renounceable offer is one way Ebos is raising capital for its $1.1 billion purchase of Australian pharmaceutical wholesaler and distributor Symbion.
The offer means shareholders can act on the rights and buy more shares or they can sell the rights on the market to another investor who wants the new Ebos shares.
Those who do nothing lose money they could gain from selling the rights.
Ebos chief financial officer Dennis Doherty said it was important that all shareholders took action regarding the entitlement. That could be done by taking up their entitlement to subscribe for new shares by July 1. Otherwise, they should sell their rights to new shares by June 25.
Because of the tight time-frame, Ebos had sent shareholders entitlement details and a reminder letter to act on the potential shares.
"Doing nothing means you are likely to lose value. Act now."
Some people who were overseas or ignored the advice would miss out on the value, Doherty said.
The rights were today trading 1 cent higher at $2.98 under the new NZX code of EBORC.
The head Ebos shares were trading 2c higher at $9.53.
Investors need to add the rights price with the extra $6.50 needed to pay for a full share.
The Symbion acquisition, supported by Ebos shareholders at a special meeting in Christchurch last Friday, will more than double its market capitalisation to $1.25b.
Ebos, based in Christchurch, will become the third-largest New Zealand firm on the NZX by revenue behind Fonterra and Fletcher Building. Ebos revenues will leap to $6b from about $1.5b, after the purchase.