Pacific Ethanol boosts stake in New PE Holdco to 27%
Dec 1, 2011 - US renewable fuel maker Pacific Ethanol Inc (NASDAQ:PEIX) said Thursday it had raised to 27% its interest in New PE Holdco LLC.
Pacific Ethanol purchased an additional 7% stake in New PE Holdco for USD 4.5 million (EUR 3.3m) in cash. The target company owns four Pacific Ethanol production plants with total capacity of 200 million gallons (757 million litres).
The transaction, immediately accretive to shareholders, was priced at a discount to market valuations, president and CEO Neil Koehler said. "We intend to seek additional ownership opportunities in these and other production facilities on favorable terms to further enhance shareholder value," Koehler added.
In October 2010 Pacific Ethanol got its initial 20% shareholding in the company for USD 23.3 million.