Genus will buy ABS Global, if alls well

22 October 1999

Genus will buy ABS Global, if alls well

GENUS has agreed to buy US cattle breeding company ABS Global for $46.4m (£28m), provided this years accounts are satisfactory.

The acquisition, of which 10% includes long-term debt, will be funded by a share issue and through borrowing.

The issue of 5.7m Genus shares at 175p each has been conditionally taken up by several UK financial institutions, raising about £10m. The value is only about 25p short of the all time high, and marks a 65p climb in just 6 months.

It means the proportion of shares owned by farmers and staff will fall from 96% to 70-75%. But farmers should welcome the citys show of confidence, says Mr Wood, since it comes just a few months ahead of Genus planned move to full stock market listing (it is currently listed on OFEX, the junior market for small to medium firms). &#42

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