The S&P/NZX 50 Index in New Zealand concluded the trading day on a positive note, recording a modest gain as investors eagerly await details of the potential multi-billion-dollar acquisition by Ebos Group of veterinary services provider Greencross. Ebos Group’s shares remain in a trading halt pending the announcement of the deal, which is anticipated to involve a significant capital raise estimated between $2.5-$3 billion.
Ebos Group, having raised $845 million last year for the acquisition of Life Healthcare and expansion into the South East Asian market, is poised for another substantial financial move. The acquisition of Greencross, currently under the ownership of TPG Capital along with major shareholders such as Ontario Pension Plan and AustralianSuper, is valued at approximately $3.5 billion.
During today’s trading, various sectors exhibited mixed performances, with notable movements observed:
- Fisher and Paykel Healthcare reaching $22.23.
- Tourism Holdings experiencing a 3.82% surge to $3.53.
- Auckland International Airport climbing to $7.85 ahead of an MSCI Index reweighting.
- Seeka growing by over six percent to $2.45.
- Genesis Energy (NYSE:GEL) selecting Gentrack, which rose by over two percent, for its digital transformation.
- Gentrack has notably rebounded nearly 209% from a low point over the past year, securing new contracts and previously hitting a high of $7.15 in September 2018.
Conversely, the retail sector faced downturns with Briscoe Group and The Warehouse experiencing losses amid broader retail softness. Other companies such as Mainfreight and Vulcan Steel also witnessed declines.
Shares of Sky TV and Allied Farmers showed improvement, with Allied Farmers growing to 83c. The energy stocks displayed a mixed performance, with Meridian Energy experiencing a slight rise while Vector declined.
In strategic shifts within the insurance sector, Tower Insurance announced its decision to cease insuring commercial farms starting February next year. This move aligns with Tower’s strategy to focus on personal and small business insurance, including lifestyle blocks, discontinuing commercial farm insurance, which contributed gross written premiums worth $9 million annually.
Market participants, including analysts like Matt Goodson, highlighted the significance of Ebos’s potential capital raise, considering it could be one of New Zealand’s largest, following their previous capital influx for the Life Healthcare purchase. Investors remain vigilant, recognizing the potential impact of these developments on market dynamics in the days ahead.