AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
_6ff029a61766633234293.png?format=webp&width=1186&height=250)
Green Plains Sells Ethanol Plant to POET for $190 Million, Analysts Predict Modest Downside and 40.4% Upside
ByAinvest
Wednesday, Aug 27, 2025 10:19 pm ET1min read
Green Plains Inc. is selling its Rives, Tennessee ethanol plant to POET for $190 million to bolster liquidity and reduce debt. Analysts recommend a "Hold" status with an average price target of $9.13, suggesting a potential downside of 8.29%. The company's one-year GF Value projection indicates a potential 40.4% upside to $13.97.
Green Plains Inc. has announced the sale of its Rives, Tennessee ethanol plant to POET LLC for $190 million in cash, inclusive of an estimated $20 million of working capital. The proceeds from this transaction will be used to retire nearly $128 million in junior mezzanine notes and bolster liquidity [1].The sale is a significant move by Chris Osowski, who was appointed CEO last week, as part of the company's strategic review process. This review, which began in February 2024, considered various alternatives, including a potential sale of the plant. The board concluded that executing the current strategy under existing leadership was the best path to deliver shareholder value [2].
The transaction is expected to close during the third quarter of 2025, subject to customary closing conditions, regulatory approvals, and standard representations, warranties, and indemnification obligations [3]. The sale reflects Green Plains' commitment to unlocking value for shareholders and strengthening its balance sheet.
Green Plains is currently focusing on its carbon-capture pipeline and the expected boost in the nation’s ethanol-blending requirement starting next year. The ability to repay the debt owned by BlackRock funds marks a significant milestone in enhancing the company's financial flexibility and advancing its carbon reduction strategy [1].
Analysts recommend a "Hold" status for Green Plains with an average price target of $9.13, suggesting a potential downside of 8.29%. The company's one-year GF Value projection indicates a potential 40.4% upside to $13.97 [3].
References:
[1] https://www.bloomberg.com/news/articles/2025-08-27/green-plains-sells-ethanol-plant-to-repay-debt-held-by-blackrock
[2] https://finance.yahoo.com/news/green-plains-enters-agreement-sell-201500829.html
[3] https://www.businesswire.com/news/home/20250827977444/en/Green-Plains-Enters-into-Agreement-to-Sell-Obion-Tennessee-Plant-to-POET
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet