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For immediate release (March 30, 2006)
LAKOTA, Iowa — Members of Midwest Grain Processors Cooperative, the majority owner of MGP LLC, a Lakota-based ethanol producer, voted today to approve sale of 60 percent of the LLC to Global Ethanol Holdings Pty. Ltd., based in Brisbane, Australia.
Out of a total 1065 ballots cast in the voting, 717 or 67.3 percent, were in favor of the sale, with 348 votes cast against the proposal. The 1065 votes cast represented a participation by nearly 83 percent of the cooperative’s members. The cooperative has nearly 1,300 farmer members in 10 Midwestern states.
According to David Nelson, chairman of the board of MGP Cooperative, the closing is expected to occur in April. The company will immediately begin to move forward with plans to double or triple the 100 million gallon ethanol plant at Lakota and the 57 million gallon plant currently under construction at Riga, Mich. The company, under Global Ethanol’s leadership, is also pursuing the construction of a 100 million gallon ethanol plant in Illinois.
“The outlook for the farmer owners is tremendously bright,” Nelson said. “They will receive nice checks in the mail in the next few months, and we will then look forward to communicating with our members about new opportunities.”
He said the farmer owners have a tremendous opportunity to continue to grow their investment in the business alongside Global Ethanol.
“It is a win for the farmers, a win for the company and a win for Global Ethanol,” Nelson said. “It is also very good news for the Midwest. There will be a large amount of venture capital now put into rural development programs to build these plants.”
More information about MGP LLC can be found online at www.MGPethanol.com.
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