LONDON (Alliance News) - Animal genetics firm Genus PLC said Thursday it intends to raise GBP68 million through a share placing to reduce its net debt and add flexibility to its balance sheet.
Peel Hunt LLP and Liberum Capital Ltd will act as joint book runners for the accelerated bookbuild. G
Genus said it will place 3.1 million shares at 2,200 pence each. Shares in Genus closed up 3.1% at 2,386.00p on the day Thursday.
The placing is equivalent to 5% of Genus's issued share capital.
The company said it has invested more than GBP180 million on capital expenditure and acquisitions through internal cash flow and financing facilities in the last five years. Its net debt as at June 30 was GBP108.5 million.
Included in that GBP180 million figure are a number of acquisitions, including that of In Vitro Brasil SA, which relates to the production of "elite bovine embryos".
The placing is expected to "reduce the company's net debt position and to provide balance sheet flexibility to continue to capture growth opportunities".
Over the next three years, Genus is anticipating a number of capital expenditure and investment initiatives. These include the expanding of its ABS bovine supply chain and deferred payment for its collaboration with Avlscenter Mollevang AS.
Genus (GNS)