Shareholders Ancora wants Green Plains to explore sale, seeing $50/share

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Green Plains (NASDAQ:GPRE) +6.2% pre-market Tuesday after activist investor Ancora Holdings urged the company to explore a sale.

In a letter to the Green Plains (GPRE) board, Ancora said the company's "ongoing transformation faces numerous long-term risks, ranging from economic volatility to secular headwinds to policy shifts."

Ancora - Green Plains' (GPRE) second largest shareholder, with a 7% equity stake - estimates a sale of the company would yield at least $50/share for shareholders, representing more than 60% upside from current levels.

"Given the aforementioned risks, and the fact that Green Plains' underlying value is significantly greater than where its shares are trading today, we are asking the board to commence a review of value-maximizing strategic alternatives," Ancora said in its letter.

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Comments

[Goldshoe]

It's rare to identify an opportunity like GPRE. I agree with Ancora on all their points regarding the potential for high protein feed, clean sugar and the likely significant interest GPRE would attract. Where I diverge is one of timing. GPRE has been executing well, announcing meaningful JV's and is close to a major inflection point, this leads me to believe the potential value of GPRE could be a multiple of $50. I would like to see the company continue on its current business plan. and attract the appropriate value at the right time.

[ComputerBlue]

@Goldshoe yeah, no one is buying them today with all that capex

[Goldshoe]

@ComputerBlue Yes, agricultural technology companies have capex

[ComputerBlue]

@Goldshoe no kidding..I work in the sector

[ComputerBlue]

Gpre..among the poorest operated cos in their industry