VTTI Energy Partners has received a proposal from VTTI BV, the parent company, to which VTTI BV would acquire through a wholly owned subsidiary all publicly held common units of the partnership in exchange for $18.75 per common unit, representing a 3% premium over the 30 trading day volume weighted average price as of March 1, 2017. 

If approved, the transaction would be effected through a merger of the partnership with a wholly owned subsidiary of VTTI. 

VTTI Energy Partners is a limited partnership, formed to own, operate, develop and acquire refined petroleum product and crude oil terminaling and related energy infrastructure assets on global scale. The partnership’s assets include interests in a portfolio of six terminals that are strategically located in energy hubs throughout the world with a combined total storage capacity of 35.7 million bbl.

VTTI BV’s assets include interests in a portfolio of terminals that are strategically located throughout the world with a combined total storage capacity of 54 million bbl including assets under construction.

“Despite two dropdown transactions and six distribution increases since mid-2015, the Partnership’s common units have performed below VTTI’s expectations even amidst recent improvement in commodity prices and investor sentiment in the broader market,” VTTI said.

“Given the trading levels of the Partnership’s common units, the resulting increased cost of capital and the liquidity challenges associated with the Partnership’s relatively small public float and other factors, VTTI does not intend to execute any further dropdowns to the Partnership of additional assets or equity interests in VTTI MLP B.V., the holding company for the Partnership’s operating subsidiaries,” VTTI added.

VTTI Energy Partners’ share price was down 5cts to $18.40 on Thursday, with the 52-week range at $15.40-$21.74.

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