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What happened
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Units of Buckeye Partners (NYSE: BPL)& nbsp; soar today, up more than 28% at 10 am EDT after the & nbsp;principal limited partnership (MLP) accepted a buy-back offer. The company also announced its first quarter results. "Data-reactid =" 12 "> Units of Buckeye Partners (NYSE: BPL) soar today, up more than 28% at 10 am EDT after the Master LP (MLP) accepted a buyout offer. The company also announced its first quarter results.
So what
Buckeye Partners has agreed to be acquired by the Global Fund for MFI Infrastructure at a price of USD 41.50 per unit in cash. The transaction values the company at $ 10.3 billion. The cash transaction represents a premium of 27.5% for the shares of the company. Buckeye expects the transaction to close in the fourth quarter.
Two people shaking hands with pipelines in the background.
Source of the image: Getty Images.
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This transaction follows Buckeye's strategic review, which It completed Last November, the company took several steps to strengthen its financial profile, including: slash his distribution and the sale of several assets. The subsequent improvement made it a much more attractive candidate for acquisition. "Data-reactid =" 27 "> This transaction is a follow-up to Buckeye's strategic review, completed last November, and the company took several steps to strengthen its financial profile, including: reducing its distribution and the sale of several assets, the subsequent improvement has made it a much more attractive candidate for acquisition.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "These asset sales, however, have a potential close Distributable cash flow, for example, decreased by almost 15% from the first quarter due to the loss of revenue from these activities, and the company expects to improve its results in future projects. expansion., which include a new oil export terminal in Texas. "data-reactid =" 28 "> However, these asset sales have a short-term impact on Buckeye's results: distributable cash flow, for example, decreased by almost 15% compared to the first quarter Due to the loss of revenue, the company expects its profits to improve in the coming years as its expansion projects, including a new Texas oil export terminal, are completed. .
Now what
Buckeye Partners worked hard to turn around its financial profile, which was under pressure after paying too much for an acquisition a few years ago. These efforts, as well as its investments in high-yielding expansion projects such as the oil export facility, are beginning to bear fruit. This led IFM Global to make an offer that it could not refuse.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 31 "> More from The Motley Fool
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Matthew DiLallo has no position in any of the actions mentioned. The Motley Fool has no position in the mentioned actions. The Motley Fool has a disclosure policy."data-reactid =" 39 ">Matthew DiLallo has no position in the mentioned actions. The Motley Fool has no position in the mentioned actions. Motley Fool has a disclosure policy.
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