Why Shares of Green Plains Partners Just Hit a 52-Week High
Shares of Green Plains Partners (NASDAQ: GPP) surged by double-digit percentages this morning to 52-week highs after its ethanol producer and parent company, Green Plains (NASDAQ: GPRE), announced an agreement to acquire the remaining stake in the partnership in a stock-and-cash deal. Green Plains Partners stock was trading 17% higher as of 11:20 a.m. ET Monday.
Green Plains will acquire all the remaining shares (or units) of Green Plains Partners that it doesn't already own in a deal expected to close in the fourth quarter of 2023. As of Dec. 31, 2022, Green Plains owned a 50.8% stake in the partnership.
As per the terms of the agreement, each shareholder in Green Plains Partners will receive 0.405 shares in Green Plains and $2 in cash for every unit they own. That means Green Plains is offering roughly $15.69 for every unit of the partnership as of Sept. 15, representing a premium of 20% to the closing price of May 3, a day before Green Plains first proposed the merger. Not surprisingly, Green Plains Partners shares soared today and hit a 52-week high of $16.22 per share, as of this writing.
Source Fool.com
