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Horizon Discovery buys from General Electric

The gene editing specialist is to spend a total of $85m (£65m) on GE subsidiary Dharmacon.
July 19, 2017

Horizon Discovery (HZD) – one of Britain’s brightest companies in the rapidly expanding world of gene editing – is bulking up. The group has announced the proposed acquisition of gene modulating company Dharmacon (which is currently owned by General Electric) for $50m in cash (£39m) and $35m in new shares.

IC TIP: Hold at 237p

In order to fund the $50m cash element of the acquisition, Horizon has also announced that it is returning to the market to raise £80m gross – almost half its current market capitalisation – via the placing of 39m shares at 205p. The remaining proceeds from the fundraising will be used to boost the group’s cash reserves, which were worryingly depleted at just £6m at end-2016. Following the acquisition, a subsidiary of GE will own 9 per cent of the enlarged group.