Ebos Group director and major shareholder Peter Kraus is increasing his holding in the company, after selling it down for personal reasons two years ago.
Mr Kraus, through investment group Whyte Adder, is offering to buy Ebos shares on the market to increase his holding by 5 per cent,taking it to 30 per cent.
The on-market offer comes in the midst of a $10.5 million capital raising by the healthcare products distributor. That complicates the proposal, because the price Whyte Adder is prepared to pay is based on prices that Ebos stock will trade at both before and after a one-for-two rights issue to raise the extra capital.
The range of prices is equivalent to $4.80-$5.50 for each current Ebos share. That compares with the company's share price of $5.50 before yesterday's offer, which was close to a 12-month high of $5.65 a share.
Mr Kraus said he was seeking a bigger holding because he had the funds available to increase the holding. In 1997 the family trust he controls had a 55 per cent stake in the company, but that was sold down following a marital breakup.
Mr Kraus is also a sub-underwriter for the capital raising, and could theoretically increase his holding even further if some shareholders decided not to take up their entitlements.
The capital is being raised to fund an expansion of the group's activities in Auckland and Australia. It has an agreement to buy 50 per cent of Auckland healthcare supplies business Health Support.
Entrepreneur Eric Watson had a 5.5 per cent stake in the company, but has halved his shareholding over recent months.
Ebos's latest financial results show after-tax earnings rose 1.3 per cent to $1.5 million in the six months to the end of December.
