March 4 (Renewables Now) - US ethanol producer Pacific Ethanol Inc (NASDAQ:PEIX) on Tuesday said it has agreed to sell its majority stake in Pacific Aurora LLC to its partner in the ethanol venture, Aurora Cooperative Elevator Company, for USD 52.8 million (EUR 47.3m).
The agricultural cooperative, which holds 26% in Pacific Aurora before acquiring Pacific Ethanol's 74% stake, will acquire two ethanol production plants with a total annual production capacity of 145 million gallons, a grain elevator and integrated rail facilities in Aurora, Nebraska.
After working capital adjustments and debt settlements between the two companies, Pacific Ethanol is expected to receive about USD 27 million in cash and USD 16.5 million in promissory notes at closing.
The transaction is expected to be finalised in the next 45 days, subject to customary closing conditions.
(USD 1.0 = EUR 0.895)