LONDON (Thomson Financial) - VeraSun Energy Corp and US BioEnergy Corp said
they have agreed to merge, in a deal where 0.81 share of VeraSun common stock
will be issued for each outstanding share of US BioEnergy common stock,
representing a premium of approximately 11 pct.
The merger has been unanimously approved by the board of directors of each
company, and is expected to close during the first quarter of 2008, pending
shareholder approval, anti-trust regulatory clearance and the completion of
other usual conditions.
Existing VeraSun shares will remain outstanding, and will represent
approximately 60 pct of the shares outstanding after the merger.
The companies said the merger is expected to be accretive to VeraSun's
earnings in the first full fiscal year of combined operations, and the new
company is projected to have a market capitalization of approximately 1.5 bln
usd.
tf.TFN-Europe_newsdesk@thomson.com
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