Monday, September 1, 2008

IC Green Energy launches takeover bid for German biodiesel manufacturer Petrotec

IC Green Energy, a subsidiary of Israel Corp., has announced a takeover bid for Petrotec AG, a Germany-based biodiesel company, valuing Petrotec at about 28 million euros.

Petrotec says IC Green Energy has already bought a 42% stake in the company, and remaining shareholders are to receive a voluntary takeover offer at the same price (2.70 euros per share).

Petrotec is a manufacturer of biodiesel based on alternative feedstocks. The company produces biodiesel with its multi-feedstock technology from yellow grease, animal fats and virgin vegetable fats and oils. In 2007, Petrotec produced 50,800 tons of biodiesel. It has the capacity to produce up to 185,000 tons of biodiesel a year at its two plants in Germany.

IC Green Energy CEO Yom Tov Samia told Globes, "The acquisition of Petrotec is ICG's first investment in the European market as part of our strategy to deepen its activity in the value chain in the biofuels market."

At a Tel Aviv University event in May, Samia outlined IC Green Energy's "12-12 Vision" to be one of the 12 leading companies worldwide in the field of renewable energy by 2012. In order to achieve this goal, IC Green Energy aims to process 4-5% of the global biofuel market (~4 million tons), and Samia emphasized that the company's biofuel production will be based solely on non-edible feedstock.

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