Ecoya's fast track Trilogy deal okayed

Sisters Catherine de Groot and Sarah Baker have sold their skincare business Trilogy to Ecoya. Photo / Supplied

Ecoya's acquisition of natural skincare business Trilogy was finalised yesterday after the NZX approved a waiver that allowed the company to proceed with the sale without gaining shareholder approval.

On Monday, Ecoya put a trading halt on shares while it proceeded with the capital-raising component of the acquisition.

Ecoya claimed the acquisition needed to be "executed swiftly" because there was overseas interest in Trilogy.

The NZX said there was a "very real likelihood" Ecoya's bid could be compromised and its deal made less competitive if the company waited for a shareholder vote.

It added that the acquisition of Trilogy was seen as "an exceptional and complementary opportunity for Ecoya".

Trilogy is expected to make earnings over the current financial year that will complement Ecoya's loss-making position as it focuses on growth into new markets.

The earnings Trilogy is expected to make will help Ecoya's expansion plans and accelerate its break-even date.

In 2009, Trilogy generated revenues of $9.3 million.

Ecoya's executive chairman, and 42 Below founder, Geoff Ross said Trilogy had approached his company, but due to overseas interest in the company, Ecoya had to act on shareholders' behalf and make the sale happen quickly to secure it.

"There were a number of offshore companies that were interested in Trilogy. I think it's pretty pleasing for Trilogy to stay in New Zealand and grow within another New Zealand company rather than be sold offshore."

Ecoya listed at $1 in May and shares closed yesterday at 82c.

Yesterday, Ecoya completed a $4.75 million placement of 6,333,333 ordinary shares at 75c on behalf of major shareholder The Bakery Business - a company associated with Ross.

The placement comprises a base $4.5 million plus oversubscription of a further $250,000.

The price reflects a 6.25 per cent discount to the closing price of shares last Friday.

Settlement of the new shares issued under the placement is on Friday of this week.

Ecoya announced a Share Purchase Plan (SPP) for shareholders at the final placement price of 75c per share up to a total of $1 million.

New Zealand-based shareholders will have an opportunity to invest up to $15,000, minimum $500, on September 23 at 5pm.