Ownership of the former Bahamas Oil Refining Company (BORCO) has changed hands for the third time in the past decade with Friday’s announcement of its parent’s acquisition.
The now-Buckeye Bahamas oil storage facility and marine terminal will pass into the hands of IFM Investors and its IFM Global Infrastructure Fund as a result of their purchase of Buckeye Partners, which is due to close by the 2019 fourth quarter.
BORCO, which was first acquired from PDVSA, the Venezuelan state-owned oil company, by a combination of the First Reserve private equity fund and Vopak, was subsequently sold to Buckeye Partners some years later.
“Buckeye’s Board of Directors recently reviewed strategic options for the business and determined that IFM’s proposal to acquire Buckeye is in the best interest of Buckeye,” said Clark C Smith, chairman, president and chief executive of Buckeye.
“The proposed transaction will provide immediate and enhanced value for our unitholders with an attractive premium that accelerates long-term returns and represents the underlying value of our business.
“In addition, the proposed transaction will provide Buckeye with superior access to capital to execute on its long-term business strategy. We look forward to this next chapter in Buckeye’s 133-year story.”