BioVerde Buys Assets From Copenor, Plans Initial Public Offering in 2013

BioVerde Industria e Comercio de Biocombustiveis SA agreed to pay 23.5 million reais ($13.2 million) for assets of Companhia Petroquimica do Nordeste, known as Copenor, according to a regulatory filing.

The buy is part of BioVerde’s plan to boost its biodiesel production capacity to fourteen times its current amount by the end of next year before going public in 2013, board member and head of capital markets at Trendbank, Ailton Domingues, said in a telephone interview from Sao Paulo.

Taubate-based BioVerde will invest a further 55 million reais in a 200,000 square-meter (2.2 million square-feet) industrial plant by the end of the year. The company aims to reach an annual production capacity of 1.2 billion liters by June, 2012.

The company currently has the capacity to produce up to 83 million liters of biodiesel annually at its sole unit in Taubate, according to its Website.

“With this investment, we are completing the business plan to become the main biodiesel producer in the country after Petrobras,” Domingues said. BioVerde plans to go public in 2013, and will fund its investments until 2012 with its own resources, credit lines and selling debt, he said.

To contact the reporter on this story: Joao Oliveira in São Paulo ffrisch1@bloomberg.net

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