Vopak to book $150 mln gain on terminal sale
Dutch oil and chemicals storage firm Vopak (VOPA.AS) said on Monday it would sell its stake in a Bahamas terminal to U.S.-based Buckeye Partners (BPL.N) and book a $150 million gain in the first quarter.
First Reserve Corporation, Vopak's partner in the Bahamas Oil Refining Company (BORCO), said in December it would sell its 80 percent stake in the terminal to pipeline and storage terminal operator Buckeye for $1.36 billion, including the proportionate debt in the joint venture.
Vopak said on Monday it would exercise its right to sell its 20 percent stake in the terminal on the same terms and conditions for a total deal value of $168 million in cash and about $100 million in Buckeye units.
Provided that the value of the Buckeye units does not decrease before the deal closes, Vopak said it would book an after-tax profit of more than $150 million on the sale, to be recorded in the first quarter.
Vopak said both partners have successfully redeveloped the the former refinery into an independent oil storage terminal with a capacity of 3.4 million cubic meters.
The deal is expected to close in coming weeks, subject to government approvals in the Bahamas, but Vopak said it will continue to operate the terminal and work closely with Buckeye to secure a proper transition and handover.
First Reserve Corporation, Vopak's partner in the Bahamas Oil Refining Company (BORCO), said in December it would sell its 80 percent stake in the terminal to pipeline and storage terminal operator Buckeye for $1.36 billion, including the proportionate debt in the joint venture.
Vopak said on Monday it would exercise its right to sell its 20 percent stake in the terminal on the same terms and conditions for a total deal value of $168 million in cash and about $100 million in Buckeye units.
Provided that the value of the Buckeye units does not decrease before the deal closes, Vopak said it would book an after-tax profit of more than $150 million on the sale, to be recorded in the first quarter.
Vopak said both partners have successfully redeveloped the the former refinery into an independent oil storage terminal with a capacity of 3.4 million cubic meters.
The deal is expected to close in coming weeks, subject to government approvals in the Bahamas, but Vopak said it will continue to operate the terminal and work closely with Buckeye to secure a proper transition and handover.