Pacific Ethanol Increases Ownership in Plants
Pacific Ethanol, Inc. (Nasdaq:PEIX - News), the leading marketer and producer of low-carbon renewable fuels in the Western United States, purchased an additional 7% ownership interest in New PE Holdco LLC, the owner of the four Pacific Ethanol production facilities with a combined annual production capacity of 200 million gallons. The company paid $4.5 million in cash for the additional interest. This purchase brings the company's total ownership interest to 27%. On October 6, 2010, the company paid $23.3 million in cash for its initial 20% ownership interest.
"We are excited to increase our ownership interest at an attractive valuation. At current margins, this transaction is immediately accretive to shareholders, and is priced at a discount to both market valuations and our initial 20% purchase," said the company's president and CEO, Neil Koehler.
- Published: 01 December 2011
- Written by Editor