In Minnesota, Advanced BioEnergy, LLC announced that, together with its subsidiary ABE South Dakota, LLC, it has entered into an Asset Purchase Agreement with Glacial Lakes Energy, LLC, based in Watertown, South Dakota, under which the company will sell its Aberdeen and Huron South Dakota ethanol plants to GLE for $47.5 million, plus the value of ABE inventory at the time of closing. Closing of the transaction is subject to approval of the ABE unitholders and other customary closing conditions, including a portion of the sales proceeds being held in a third party escrow indemnity account after closing to support the company’s indemnification obligations under the Asset Purchase Agreement. The Company expects the transaction to close in the third calendar quarter of 2019. Advanced Bioenergy will continue to operate its two ethanol plants in Huron and Aberdeen, South Dakota until the transaction closes.
On February 26, 2019, the company announced that it had begun exploring strategic alternatives for its business operations, including the possibility of a sale of one or both of its ethanol plants and retained Ascendant Partners, Inc. to advise it in this process and help evaluate the opportunities and options available to the company.
As part of this process, the ABE Board of Directors explored the potential sale of one or both facilities to generate the best value for unitholders and possibly transition ownership to an operator with the capacity and resources to ensure both plants are positioned for continued long-term success in providing value to their local communities. This process resulted in the signing of the Asset Purchase Agreement with GLE on August 1, 2019.
In connection with the sale, the Company will be adopting, subject to ABE unitholder approval, a Plan of Liquidation under which the Company will be liquidated and the proceeds of the sale will be distributed to unitholders, after payment of the company’s outstanding debt, transaction–related expenses and other expenses related to the Plan of Liquidation. Additional details about the transaction will be contained in a Form 8-K that ABE will file with the Securities and Exchange Commission and in a Proxy Statement that ABE will file with the SEC and send to its unitholders in connection with the proposed approval of the transaction.
Category: Producer News