BROOKINGS, S.D., March 31 /PRNewswire-FirstCall/ -- VeraSun Energy Corp.
(NYSE: VSE) today announced that it closed the merger with US BioEnergy Corp.
(Nasdaq: USBE) after the transaction was approved by a majority vote of
shareholders of both companies. The merger will be effective as of April 1,
2008.
"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."
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.
VeraSun common stock will continue to trade on the NYSE under the symbol
"VSE".
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,
making VeraSun the largest ethanol producer in the United States.
About VeraSun Energy Corporation
VeraSun Energy Corporation (NYSE: VSE), headquartered in Brookings, S.D.,
is a leading producer of renewable fuel. Founded in 2001, the company has 980
million gallons per year (MMGY) of ethanol production capacity through 10
operating facilities. Seven facilities are currently either under construction
or development with a combined capacity of 770 MMGY. Upon completion of the
new facilities, VeraSun Energy will have an annual production capacity of
approximately 1.75 billion gallons. The company announced it started
construction at its Aurora facility to extract oil from dried distillers
grains, a co-product of the ethanol process, for use in biodiesel production.
VeraSun markets E85, a blend of 85 percent ethanol and 15 percent gasoline
for use in Flexible Fuel Vehicles (FFVs), directly to fuel retailers under the
brand VE85(TM). VeraSun Energy now has approximately 150 VE85(TM) retail
locations under contract in more than fifteen states and Washington, D.C. For
more information, please visit VeraSun Energy's websites at www.verasun.com or
www.VE85.com.
Forward-Looking Statements:
Certain statements in this release, and other written or oral statements
made by or on behalf of us, are "forward-looking statements" within the
meaning of the federal securities laws. Statements regarding future events and
developments and our future performance, as well as management's expectations,
anticipations, beliefs, plans, targets, estimates, or projections and similar
expressions relating to the future, are forward-looking statements within the
meaning of these laws. These statements are based on assumptions and
assessments made by our management in light of their experience and their
perception of historical trends, current conditions, expected future
developments and other factors they believe to be appropriate. Any forward-
looking statements are not guarantees of our future performance and are
subject to risks and uncertainties that could cause actual results,
developments and business decisions to differ materially from those
contemplated by any forward-looking statements. We disclaim any duty to update
any forward-looking statements. Some of the factors that may cause actual
results, developments and business decisions to differ materially from those
contemplated by any forward-looking statements include the volatility and
uncertainty of corn, natural gas, ethanol and unleaded gasoline prices; the
results of our merger with US BioEnergy; our ability to develop an oil
extraction business; the results of our recently acquired facilities; the
results of our hedging transactions and other risk mitigation strategies;
operational disruptions at our facilities; our ability to implement our
expansion strategy as planned or at all; our ability to locate and integrate
potential future acquisitions; development of infrastructure related to the
sale and distribution of ethanol; our limited operating history; excess
production capacity in our industry; our ability to compete effectively in our
industry; our ability to implement a marketing and sales network for our
ethanol; changes in or elimination of governmental laws, tariffs, trade or
other controls or enforcement practices; environmental, health and safety
laws, regulations and liabilities; our reliance on key management personnel;
future technological advances; limitations and restrictions contained in the
instruments and agreements governing our indebtedness; our ability to raise
additional capital and secure additional financing; and costs of construction
and equipment, as more fully described in the "Risk Factors" section of our
annual report on Form 10-K for the year ended December 31, 2007.
SOURCE VeraSun Energy Corp.
-0- 03/31/2008
/CONTACT: Investors: Patty Dickerson, +1-605-696-7236,
pdickerson@verasun.com, or Media: Mike Lockrem, +1-605-696-7527,
mlockrem@verasun.com, both of VeraSun Energy Corporation/
/Web site: http://www.verasun.com
http://www.VE85.com /
(VSE USBE)
CO: VeraSun Energy Corp.; US BioEnergy Corp.
ST: South Dakota
IN: OIL
SU: TNM
RP-RF
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