VTTI BV has announced that Buckeye Partners L.P. has completed the transaction to acquire a 50% equity stake in the holding company of VTTI.
In October 2016, VTTI BV, VTTI Energy Partners LP (together VTTI) and Vitol announced that a definitive agreement had been signed for the acquisition. At that time, Clark C. Smith, Chairman, President and Chief Executive Officer of Buckeye Partners, said: “This investment in VTTI provides immediate access to a stable portfolio of international terminalling and storage assets, as well as an established platform to participate in further attractive growth opportunities across the globe.”
Mr Smith continued: “The interest we are acquiring in VTTI fits well into our growth strategy of investing in terminal assets in strategic energy hubs while further enhancing the logistical solutions available to our customer base across key energy markets. We expect this investment to generate increasing quarterly distributions supported by stable fee-based cash flows. These cash flows are underpinned by commercial agreements with credit worthy customers, anchored by Vitol. We expect this transaction to be immediately accretive to our distributable cash flow per limited partner unit in 2017 with significant accretion growth expected over time.”
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/05012017/buckeye-partners-acquires-50-stake-in-vtti/