US-based biofuel and renewable chemicals producer Renewable Energy Group (REG) acquired a 69% stake in Germany-based biodiesel producer Petrotec on Tuesday for $20.9m.
ICG, the alternative energy-focused investment arm of Israel-based holding company Israel Corporation, sold its stake to REG in a transaction which is expected to close by the end of this year.
The individual shares in the transaction are priced at $1.23, based on the 30 trading day volume-weighted average leading up to the day before the signing.
REG conducted the transaction through subsidiary REG European Holdings, which will also purchase a $15.4m loan made from ICG to Petrotec. REG intends to purchase the remaining shares in Petrotec in the coming weeks.
Daniel Oh, president and chief executive of REG, said: “REG’s investment in Petrotec is a natural extension of our business strategy which should enable us to better capture value from international trade flows and to participate in European biofuel markets.”
– Photo courtesy of Petrotec AG