Medical supplies company Ebos Group Ltd reported it has completed an $11.7 million institutional placement.
The money will be used to partially fund the $86.3m acquisition of medical supplies company PRNZ Ltd, which Ebos announced on Wednesday.
Ebos chief executive Mark Waller today said the institutional placement was
oversubscribed.
" We are delighted with the support we have received through the placement process," he said.
"Such support is a strong endorsement of the acquisition of PRNZ, Ebos' history of successful acquisitions, and the significant size, strengthening and diversification of Ebos' business the acquisition of PRNZ provides."
As well as the institutional placement, Ebos intended to implement a share purchase plan to provide eligible New Zealand shareholders an opportunity to participate in the capital raising associated with the acquisition of PRNZ at a price no more than the price paid under the placement.
The share purchase plan would allow shareholders to subscribe for parcels of shares of up to $5000 a shareholder, Mr Waller said.
Final terms of the share purchase plan would be formally advised to the market within the next week.
Ebos is funding the PRNZ acquisition by $43m debt from the ANZ Bank and $43m through placement of shares.
A trading halt placed on Ebos shares on Wednesday afternoon was removed soon after 10.30am today.
Soon after trading resumed, Ebos shares were up 6c to $4.92, having ranged between $4.50 and $6 in the past year.
- NZPA
