Vopak announced it has sold all the remaining Buckey units which they got as part of the proceeds of the sale of the 20% stake in Borco. They sold them much faster than expected, at a discount of $ 7m including selling costs. Hence, they now have the entire proceeds from the Borco sale in cash. The $ 7m discount/selling costs will be part of the net financial result in 1H11 so we will have to make a minor adjustment. (32,24 EUR, 0,05%) proceeds of the units are $ 101m, which is € 30m below expectations, related to the decline in the share price of the Buckey units in the past few weeks. The € 30m lower proceeds translates into € 0.23 per share.
Cash is king:
Although the sale generates lower income than expected at the time of the Borco announcement, we prefer cash above Buckey units, and thus we are not too worried about today's news. We will have to make a minor adjustment to our H1-11 estimates, which are due on 24 August. No major impact on the investment case.