REGI - Renewable Energy Group: The 'Green' Premium

• On Tuesday, February 22, six days ahead of announcement of takeover offer from Chevron, the Renewable Energy Group share price closed at $32.62.
• On Wednesday, February 23, it was reported the company was exploring options after receiving takeover interest.
• By Friday, February 25, and before any takeover announcement, the market had priced in a fairly normal takeover premium, ~34% above Tuesday's close.
• On Sunday, February 27, over the President's Day long weekend, the parties settled on a price representing a premium of ~89% to the previous Tuesday's closing share price.
• It is believed Chevron's compelling need to be seen to be 'green' resulted in the offer, including both a normal takeover premium plus a 'green' premium.

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