Monsanto acquires Rosetta Green activity

Monsanto is paying NIS 126 million, a 90% premium, for the activity of the crop bioengineering company.

Monsanto Company (NYSE: MON) is acquiring the activity of crop bioengineering company Rosetta Green Ltd. (TASE: RSTG) for NIS 126 million. Last week, "Globes" revealed that Rosetta Green was in talks over a strategic cooperation agreement with a global seed company. Monsanto decided that a cooperation agreement was not enough, and decided to acquire the company in toto.

Monsanto will apparently pay $35 million for Rosetta Green, plus $2 million in milestone payments. Rosetta Green's share price rose 4.1% on Thursday to NIS 6.54, giving a market cap of NIS 66 million. Monsanto is paying a 90% premium on the market cap.

Monsanto is acquiring Rosetta Green's activity, not the company, which will become a cash-rich stock market shell. Monsanto is best known in Israel for its $35 million investment in crop bioengineering company Evogene Ltd. (TASE:EVGN) and signing a cooperation agreement with it, which could potentially be worth hundreds of millions of dollars to Evogene.

Published by Globes [online], Israel business news - www.globes-online.com - on February 3, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Your name
Please insert your name
Content
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

Thanks
You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
MORE FROM GLOBES
Twitter Facebook Linkedin RSS Newsletters גלובס