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Ebos shares up 1.5% after $1.1 billion Symbion acquisition


The stock immediately sold at $10.05 from $9.90 when trading resumed after a $90m placement to institutional investors at $8.50 apiece.

Paul McBeth
Wed, 11 Jul 2018

Shares of Ebos Group rose as much as 1.5 percent when trading resumed in the company's stock, having announced a $1.1 billion acquisition of the Symbion pharmaceutical wholesaler and distributer in Australia.

The stock immediately traded at $10.05 from $9.90 when trading resumed after a $90 million placement to institutional investors at $8.50 apiece. The shares recently traded at $9.98. The stock is rated an average 'buy' based on two analyst recommendations compiled by Reuters, with a median target price of $8.36.

Ebos today announced plans to buy Symbion in a deal which will more than triple its annual sales to some $6.3 billion as it looks to become Australasia's biggest pharmaceutical wholesaler and distributer.

The Christchurch-based company will pay $367 million in cash and $498 million in scrip to Hong Kong-based Zuellig Group for the unit, as well as take on $230 million in net debt.

The transaction will give Zuellig a 40 percent stake of Ebos and the cash portion will be funded through new debt facilities, a $90 million fully underwritten placement to institutional investors at a 10 percent discount, and a $149 million 7 for 20 pro-rata renounceable entitlement offer to existing shareholders.

The deal means about 75 percent to 80 percent of Ebos' revenue will be derived from Australia, and it will seek a dual listing on the ASX before the end of the year.

The agreement is subject to certain conditions and needs shareholder approval at a special meeting in Christchurch on June 14.

(BusinessDesk)

Paul McBeth
Wed, 11 Jul 2018
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Ebos shares up 1.5% after $1.1 billion Symbion acquisition
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