(Sioux Falls, S.D.)– Sioux Falls-based ethanol producer Verasun Energy Corporation says it’s selling assets to Valero Energy Corporation for 280 million dollars amid difficult industry conditions and tight credit markets.
The assets include certain Verasun production facilities in South Dakota, Iowa, Minnesota and Indiana. The company will sell all operations in separate or combined transactions.
Other companies have expressed interest in Verasun’s assets, excluding those included in the proposed Valero transaction.
Verasun will hold an auction for other bidders to offer more favorable terms than Valero’s bid. Bidders have until March 13th to submit qualifying bids.
Verasun says it has enough liquidity to maintain production facilities and staff through the sale process.
(Story from the Associated Press.).
