Large Ebos share sale fully subscribed

Two Ebos Group directors and major shareholders have sold a 20 per cent stake in the surgical and hospital supplier for $25 million to fund a high-tech Maori arts and culture centre on Auckland's Bastion Pt.

Deputy chairman Peter Kraus and director Barry Wallace, through their investment company Whyte Adder No 3, sold 5.5 million shares in the Christchurch-based company yesterday, leaving them with a 6.5 per cent holding.

This follows Whyte Adder's announcement last year that it was the $16 million backer of cultural tourism attraction Te Pa, which will be built near the Michael Joseph Savage Memorial in Mission Bay.

As part of the deal, it received a 70 per cent stake in private company Oceania Attractions - a partner in the venture with Ngati Whatua o Orakei Maori Trust Board.

Wallace said as well as freeing the cash for this investment, yesterday's selldown would rebalance Whyte Adder's investment portfolio. "We wanted to have a war chest to take advantage of some opportunities."

These included increasing its 50 per cent stake in environmentally friendly household cleaning and skincare product company the Eco Store, and investing in similar companies with export potential.

Ebos' share price has risen 40 per cent in the last year. Trading in the shares will resume today after a 24-hour suspension to allow for yesterday's bookbuild to be completed. They last traded at $4.52.

Shane Edmond, head of retail broking at Forsyth Barr, said the placement attracted strong interest from retail and institutional investors, and was fully subscribed at $4.20.

Wallace said the addition of new shareholders to the register would make Ebos shares more available and tradeable.

Kraus formed Whyte Adder in the 1990s when he started investing in Ebos. He bought his first stake when Brierley Investments sold out in 1991. In 1997, he sold down his 55 per cent stake after a marriage breakup.

Wallace, former chief executive of Ebos subsidiary Health Support, has been a Whyte Adder director for four years.

Wallace said Te Pa was halfway through the resource management process. The complex will have a 650-seat auditorium and plans also include a restaurant with a Maori-Pacific menu, a "living village", a native plants nature track and a souvenir shop.