Shares in AIM listed genetic research group Futuragene (LON:FGN) shot up by 32% to 87.75p this morning on news that one of the company’s biggest customers had agreed to buy it in a 90p per share deal that values Futuragene at £59.2m. The news came on the same day that Futuragene reported a slightly wider full year loss of £2.19m.

Futuragene's business is focused on plant genetic research and development for the forestry, biofuel, and agricultural markets. The company is set to be acquired by Brazilian paper and pulp giant Suzano following several years of joint initiatives between the two sides. In particular, Futuragene has worked closely with Suzano on developing crop-boosting genetic technology to enhance Suzano’s vast estate of eucalyptus trees. Suzano described the deal as a “natural development” of the companies’ past efforts.

Mark Pritchard, the chairman of Futuragene, said: “We believe we have positioned the company to help meet the ever increasing demands for fibre, fuel and food crops in the face of declining resources. We have developed some unique gene technology IP. We are confident that Suzano Papel e Celulose will continue to build on our track record and we believe that Suzano Papel e Celulose will develop FuturaGene into a world class business, bringing benefits for our employees, commercial partners and ultimately consumers. We believe that the resources which Suzano Papel e Celulose can deploy will accelerate the development and penetration of Futuragene's technologies.”

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