FuturaGene plc (LSE: FGN) has received a buyout offer from Brazil's Suzano Papel e Celulose SA (Bovespa: SUZB5) at a company value of ₤59.2 million, at ₤0.90 per share, a 35% premium on today's opening price. Suzano Papel has a market cap of $3.8 billion.
FuturaGene's share price rose 32% today to ₤0.88, giving a market cap of ₤49 million. FuturaGene is headquartered in London, and has an Israeli subsidiary in Rehovot, CBD Technologies Ltd., which it acquired in 2006 for $14 million.
Suzano Papel owns more than 750,000 acres of forest land. It produces paper products and wants to enter the biofuel industry. This wish is behind the offer for FuturaGene, which developed genetic engineering methods for improving plants' traits for the agricultural and biofuel industries.
Suzano Papel already owns 7.6% of FuturaGene. If the bid is accepted, FuturaGene will become a subsidiary of Suzano Papel.
FuturaGene CEO Dr. Stanley Hirsch said that the company will keep its Israeli operations, and expand them. CBD currently has 24 employees.
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010