Vopak’s price target raised by UBS following sale of BORCO stake

20 January 2011 11:46  [Source: ICIS news]

LONDON (ICIS)--UBS has raised Vopak’s price target to €42.5 ($57.4), following the Dutch logistics firm’s sale of its 20% stake in the Bahamas Oil Refining Co (BORCO), an oil storage terminal, to US-based pipeline and storage terminal operator Buckeye Partners, the investment bank said on Thursday.

Vopak’s price target was raised by €2.5 from €40.0, while the group’s ‘Buy’ rating was left unchanged.

“We believe the sale of Vopak’s 20% stake in the Bahamas terminal is at a very good price and will free up capital of €200m, which will be used for the financing of the global growth strategy,” UBS said.

UBS estimated that Vopak could now finance capacity expansion projects of up to €1.5bn on its balance sheet.

On 17 January, Vopak announced that the sale of its stake in BORCO was expected to generate an after-tax profit of over $150m, which would be booked upon completion of the deal in the first quarter of 2011.

The stake would be sold for $168m in cash and around $100m worth of Buckeye units, the company added.

($1 = €0.74)

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By: Franco Capaldo
+44 (0)20 8652 3214



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