Renewable

February 23 (Renewables Now) - US biodiesel firm Renewable Energy Group Inc (NASDAQ:REGI), or REG, is considering strategic alternatives, including a sale, after attracting takeover interest, Bloomberg reported, citing a knowledgeable source.

Shares in REG soared 19.68% to USD 39.04 in pre-market trading as of 0710 EST in New York on Wednesday. This implies a market capitalisation of about USD 1.96 billion (EUR 1.72bn), based on the number of outstanding shares.

The Ames, Iowa-based firm has already held discussions with interested large oil and gas companies. It has tapped advisers to help it in the assessment process, according to the insider cited by the media.

If the company goes for a sale, a transaction could be announced over the next few weeks. No final decision has been made yet though, the news outlet’s source has cautioned.

REG specialises in converting renewable resources into sustainable fuels. It operates 11 biorefineries in the US and Europe. In 2020, the company produced 519 million gallons, or 1.7 million metric tons, of cleaner fuel delivering 4.2 million metric tons of carbon reduction.

(USD 1 = EUR 0.881)

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