Published on 9 Jan 2024 on Zacks via Yahoo Finance
Green Plains (GPRE) Announces Unitholder Approval of Merger
Green Plains Inc. GPRE and Green Plains Partners LP GPP recently declared that certain Agreement and Plan of Merger were approved by the common unitholders of the Partnership.The approval of the Merger Agreement and the Merger needed the favorable vote or written consent of the holders of a majority of the Partnership’s outstanding common units. The holders of more than 62% of the Partnership’s outstanding common units as of the record date for the consent solicitation consented to and approved the Merger Agreement and the Merger through written consent.Green Plains currently owns a 48.8% limited partner interest and a 2.0% general partner interest in Green Plains Partners. By owning, running, developing and acquiring ethanol and fuel storage terminals, transportation assets and other associated businesses and assets, it provides fuel storage and transportation services.Each outstanding common unit of the Green Plains Partners that is not owned by Green Plains or its affiliates will, in accordance with the provisions of the agreement, be converted into the right to receive $2.00 in cash and 0.405 shares of Green Plains common stock.In addition, unitholders will receive cash equivalent to unpaid distributions from the last quarter in which a distribution was made until the closing date, as determined by the merger agreement, without interest.The merger is expected to result in several advantages, including simplifying Green Plains’ corporate structure and governance, driving immediate earnings and cash flow benefits and lowering SG&A expenses tied to the Partnership. It will also help improve the combined enterprise's credit quality and align strategic interests between Green Plains shareholders and the Partnership’s unitholders by regaining full ownership and control over Green Plains’ total platform, including terminal operations.Shares of Green Plains have lost 24.4% over the past year against a 20.1% rise of its industry.
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