Seeking Alpha

Renewable Energy to acquire Syntroleum in stock deal, +4% AH

  • Renewable Energy (REGI) agrees to acquire Syntroleum (SYNM) for 3.796M shares of REGI, which would result in SYNM shareholders receiving 0.3809 shares of REGI common stock for each outstanding share of SYNM common stock.
  • SYNM and its 50%-owned subsidiary Dynamic Fuels offer an attractive entry path for REGI into renewable diesel, REGI CEO Daniel Oh says.
  • SYNM +50%, REGI +4% AH.
Comments (6)
  • bobkeir
    , contributor
    Comments (2) | Send Message
     
    Maybe this dog will finally hunt?
    17 Dec 2013, 08:25 PM Reply Like
  • bcaser1
    , contributor
    Comments (2) | Send Message
     
    I believe this deal was undervalued and not in the interest of the stock holders in general. Can someone commnet on this deal?
    18 Dec 2013, 09:05 AM Reply Like
  • bcaser1
    , contributor
    Comments (2) | Send Message
     
    I think this buyout was completely undervalued, not in the interest of the shaeholders in general. Please what is you comment on this?
    18 Dec 2013, 09:08 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (680) | Send Message
     
    The deal is a steal for REGI.
    20 Dec 2013, 09:52 AM Reply Like
  • Blacklick Capital
    , contributor
    Comments (44) | Send Message
     
    LOL. This is a fancy biodiesel plant that generates negative cash flow, had to be shut down and their partner Tyson bailed on. The management completely ripped off shareholders. The plant was constructed north of 100 million dollars AND they are giving away their cash as part of the deal. SYNM management couldnt run any faster out the door. Another rip off that only pays the engineering firms and those that assembled the project. Shareholders are knifed at a huge discount.

     

    The big gobbling REGI is a well healed consolidation machine that is completely overvalued and poised for a fall to about 5-6 dollars per share...unless the 1 dollar biodiesel subsidy is renewed. So REGI is now using its overvalued stock as a weapon. REGI management knows this as SYNM shareholders think they are getting up to 49mm in todays terms. When the deal closes and the REGI January - february reporting takes place....and Congress does not renew the subsidy....SYNM shareholders will gain a 5 dollar stock. So recovering about 20% of their investment? Better pray for more free money to biodiesel. The RFS is giving the whole industry a huge haircut. Time to turn on the lobbying machine. SELL REGI
    23 Dec 2013, 12:16 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (680) | Send Message
     
    The plant in LA isn't a biodiesel plant and will be operational and similar in performance to the VLO/DAR Diamond Green venture. I dont necessarily disagree with the potential risks of their industry and I'd like to wish you luck on your short.
    23 Dec 2013, 02:21 PM Reply Like
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