Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for Rentech, Inc. > News item |
Rentech stockholder wants to take company private for $2.70 per share
By Lisa Kerner
Charlotte, N.C., Nov. 19 - Rentech, Inc. stockholder Sherwood Investments Overseas Ltd. suggested a $2.70-per-share buyout of the company in a letter to Rentech president and chief executive officer Hunt Ramsbottom.
Sherwood Overseas owns 4.675 million shares, or 2.86% of Rentech's outstanding shares.
According to the investor, Rentech "through its patents, owns the technology to produce ultra clean diesel and aviation fuels" in a time of rising oil prices.
"Rentech has also announced that it is nearing the mechanical completion of its $45 million Product Demonstration Unit that is expected to produce its first fuels by spring 2008. The PDU will allow Rentech to demonstrate its fuel technologies and will no doubt create numerous lucrative licensing opportunities," the letter stated.
Sherwood also highlighted Rentech's reported cash and marketable securities in excess of $63 million along with no borrowings on its credit line.
"We are concerned that your weak share price may hinder your ability to execute your business plan and suggest that you should consider either taking the company private or spinning off the fertilizer operation," Sherwood added.
Rentech, based in Los Angeles, develops gas-to-liquid and coal-to-liquid synthetic fuels.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.