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.
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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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