VeraSun receives $280 million bid from Valero for five ethanol plants, plus development project; “stalking horse” bid to be tested at auction

In South Dakota, VeraSun Energy confirmed that it has received a “stalking horse” bid of $280 million (plus inventory and pre-paid expenses) for the purchase of five of its ethanol plants, and will hold an auction to determine if a higher price can be obtained.

The plants included in the bid are: Aurora, South Dakota; Charles City, Fort Dodge, and Hartley, Iowa; and Welcome, Minnesota; and a development site in Reynolds, Indiana. VeraSun has also confirmed that it intends to sell all of its 24 ethanol plants in a court-supervised liquidation process.

Unaffected by the agreement and still for sale are: The “US BioEnergy Group”, the ASA Group and the Marion, South Dakota plant. The US BioEnergy groups consists of plants in Central City and Ord, Nebraska; Albert City and Dyersville, Iowa; Hankinson, North Dakota; Janesville, Minnesota, and Woodbury, Michigan. The “ASA Group” consists of production facilities in Albion, Nebraska, Bloomingburg, Ohio, and Linden, Indiana.

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