GPRE - Green Plains offers to buy Green Plains Partners for $13.08/unit

2023-05-04 08:06:24 ET

Green Plains ( NASDAQ: GPRE ) +3.2% pre-market Thursday after submitting a proposal to acquire all Green Plains Partners' ( GPP ) common units it does not already own, in a stock-for-unit exchange.

Green Plains ( GPRE ) is offering 0.3913 shares for each outstanding publicly held Green Plains Partners ( GPP ) common unit, representing a value of $13.08/unit for the partnership based on the May 3 closing price.

The company said the proposed deal would simplify its corporate structure and governance, generate near-term earnings and cash flow accretion, reduce SG&A expense, and improve the credit quality of the combined enterprise.

Green Plains ( GPRE ) reported a larger than forecast Q1 GAAP loss , while revenues rose 6% Y/Y to $833M.

More on Green Plains:

• See financial and valuation comparisons to sector peers
• SA analysis: Green Plains' Future Looks Bright
• Stock price return: 15.5% gain YTD, 9.5% gain in the past 12 months

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