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VeraSun Energy completes merger with US BioEnergy |
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Written by Giles Clark, London
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Tuesday, 01 April 2008 |
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The merger between VeraSun Energy Corp and US BioEnergy Corp bacame effective today (1st April) following approval by shareholders of both companies. Under the merger agreement, each outstanding share of US BioEnergy common stock will be converted into 0.810 shares of VeraSun common stock, representing a premium of approximately 11 percent based on Nov. 23, 2007, closing prices. The existing VeraSun shares will remain outstanding and will represent approximately 59 percent of the shares outstanding after the merger.
“We are pleased to complete the merger with US BioEnergy and we are well on our way to integrating our companies,” said VeraSun CEO Don Endres. “We look forward to realizing the synergies of our combined business as we expect to reach 16 biorefineries and an operating capacity of more than 1.6 billion gallons by the end of 2008. The size and scale that results from this merger will allow us to become more relevant to our customers in the petroleum industry and continue to position VeraSun as a premier platform company in the renewable fuels industry.”
With the completion of the merger, VeraSun owns and operates 10 ethanol production facilities with an annual capacity of 980 million gallons per year (MMGY). Seven other facilities are currently under construction or development. By the end of 2008, the company expects to have 16 production facilities in operation with a capacity of approximately 1.64 billion gallons.
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