Monsanto will invest $65 million in the agro-biotech company.
Crop trait enhancement company Evogene Ltd. (TASE:EVGN) has closed its deal with US seed giant Monsanto Company (NYSE: MON), which will invest $65 million over five years in the company. $18 million will be invested directly in the company, in exchange for a 13.5% initial stake. $35 million will be for R&D.
The deal gives Evogene a company value of $115 million, after money, well above its current market cap of $53.5 million. Monsanto will become Evogene's largest shareholders. The investment gives the company access to the major leagues and boosts Israel's biomedical industry in general.
Evogene's technology identifies genes in crops in order to enhance traits through genetic engineering. The share rose 5.4% by midday.
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2008
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