Verenium Soars On $98.3M Deal To Sell Biofuel Ops To BP

15th Jul 2010 13:49

DOW JONES NEWSWIRES BP PLC's (BP, BP.LN) North American biofuels business has agreed to acquire the cellulosic biofuels business of Verenium Corp. (VRNM) for $98.3 million. Verenium's shares surged 90% to $4.68 in recent premarket trading as the deal will sharply improve the unprofitable company's liquidity; cash and cash equivalents were more than halved in the first quarter to $15.5 million. As such, Verenium's stock through Wednesday's close was down 45% this year. Under the agreement, Verenium will retain its commercial enzyme business, including its biofuels enzymes products, as well as certain reseach-and-development capabilities and access to some biofuels technology that BP may develop using what it is acquiring from Vernium. The deal is expected to close this quarter. President and Chief Executive Carlos A. Riva said, "We are very pleased that our strategic development partnership with BP has successfully advanced our cellulosic ethanol technology to the cusp of commercialization." Meanwhile, Verenium said Executive Vice President Janet Roemer was promoted to president and chief operating officer of the company's enzyme's business. Roemer joined the company in March 2008. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; [email protected]; (END) Dow Jones Newswires July 15, 2010 08:49 ET (12:49 GMT)