Jim Lane
In Oklahoma, and Iowa, Renewable Energy Group (REG; NASD:REGI)
announced that it would acquire substantially all of the assets of
Syntroleum Corporation (NASD:SYNM),
and assume substantially all of the material liabilities of
Syntroleum, for 3,796,000 shares of REG common stock worth $40.08
million at today’s market close.
The purchase price subject to reduction in the event that the
aggregate market value of the REG common stock to be issued would
exceed $49 million or if the cash transferred to REG is less than
$3.2 million).
“This will help us grow our advanced biofuel business, enhance
our intellectual property portfolio, expand our geographic
footprint and launch REG into new customer segments.”” said REG
CEO Daniel Oh.
Syntroleum has pioneered Fischer-Tropsch gas-to-liquids and
renewable diesel fuel technologies, has 101 patents issued or
pending, and owns a 50% interest in Dynamic Fuels, LLC, a
75-million gallon renewable diesel production facility in Geismar,
Louisiana.
”Syntroleum and its 50%-owned subsidiary Dynamic Fuels represent
an attractive entry path for REG into renewable diesel,” Oh
continued. “They have invested substantial resources in their
Bio-Synfining technology, which enables the economical conversion
of lipid-based biomass into diesel and jet fuel. Their technology
and products complement our core biodiesel business.”
Syntroleum’s Board of Directors unanimously approved the asset
purchase agreement and recommends that Syntroleum stockholders
vote in favor of the transactions contemplated by the asset
purchase agreement at a special meeting of stockholders to be
convened for that purpose.
“Today’s announcement marks the culmination of our comprehensive
process to review Syntroleum’s strategic alternatives to enhance
shareholder value,” said Syntroleum President and CEO, Gary Roth.
“We are confident that REG’s multi-feedstock business model and
the combination of our strong management teams is the best path
forward for Syntroleum.”
Syntroleum’s Board of Directors also has approved a plan of
dissolution for Syntroleum pursuant to which Syntroleum will be
liquidated and dissolved, in accordance with Delaware law,
following consummation of the asset sale and subject to
stockholder approval of the plan of dissolution at the special
meeting.
The asset sale is expected to close in the first quarter of 2014,
subject to satisfaction or waiver of the closing conditions.
http://www.altenergystocks.com/archives/2013/12/reg_enters_renewable_diesel_with_syntroleum_p urchase.html
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