Genus fends off hostile bid
Genus fends off hostile bid
GENUS has made another step in its expansion plans, with the acquisition of Hylton Nomis, the farm computer software company.
Hylton Nomis will operate from Nov 30 as a division of Genuss recently launched farm consultancy division, Axient.
This marks the firms fourth acquisition in three months, including the £2m purchase of Scottish Livestock Services cattle breeding business.
But Genus itself has been the subject of predatory attention, with FW learning this week of a hostile takeover bid.
A consortium, including venture capitalists Alchemy Partners as the lead fund provider, has sought to acquire shares, dubbing Genuss current diversification strategy as "flawed".
The consortiums Alex Park – himself a farmer and managing director of Cheshire Breeding Services Ltd – says it made an indicative offer "in excess of the net assets per share as disclosed in the report and accounts".
Mr Park says the proposal offered the 29,000 farmer-shareholders a "windfall gain", and claimed it would be able to "improve Genuss services to the dairy industry and regain its former strengths in breeding".
But a statement from Genus said, despite receiving correspondence, no formal offer had been made. And it said the proposal would be neither of benefit to, nor in the interests of, the company or its shareholders.
"The vast majority of our shareholders are also our customers. Therefore, we believe they are more interested in continuing to receive the range of services we offer – and which we are constantly improving – than a windfall payment for their shares."
The firm intends to make a full stock market flotation within three years, at which point there would be big benefits for shareholders, said a spokesman.n