June 5, 2017 - 8:20 AM EDT
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Corporate News Blog - World Point Terminals, L.P. Announced Commencement of Tender Offer its Common Units

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LONDON, UK / ACCESSWIRE / June 5, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for World Point Terminals, L.P. (NYSE: WPT). The Company, a Delaware limited partnership, announced on June 02, 2017, that it has entered into a transaction agreement with World Point Terminals, Inc., WPT GP, LLC, and the Partnership, pursuant to which the World Point Terminals Inc., (Offeror) has commenced a tender offer to purchase all the issued and outstanding common units of the Partnership that are not already beneficially owned by the Offeror or its affiliates, at a price of $17.30 per unit, net to the holder in cash. For immediate access to our complimentary reports, including today's coverage, register for free now at:


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The Agreement

The purchase price for all the outstanding and issued common units represents an increase of $0.5 per unit, or about 3.0% when compared to the original offer of $16.80 per unit made on April 03, 2017. Pursuant to the agreement, after the completion of the offer, the Offeror will purchase any and all outstanding units not tendered pursuant to the offer. Upon completion of the buyout, the Offeror, and its affiliates will collectively hold 100% of the outstanding units.

The Board of Directors of the General Partner authorized a conflicts-committee composed of two independent directors to review, evaluate, negotiate, and, if appropriate, recommend to the Board of Directors approval of a potential transaction with the Offeror. The conflicts-committee was assisted by financial and legal advisors, engaged in negotiations and discussions with the Offeror and its advisors, regarding the terms and conditions of the proposed transaction. Post these negotiations and discussions, the conflicts-committee determined that the Transaction Agreement and the transaction will generate greater synergies for the Partnership and holders of units unaffiliated with the Offeror.

Based on the recommendation of the conflicts-committee, the Board of Directors determined the Transaction Agreement and the transactions are reasonable and does not conflict to the best interests of the Partnership and the holders of Units unaffiliated with the Offeror approved and declared advisable to the transaction agreement and recommended that the holders of the units unaffiliated with the Offeror accept the offer and tender their units pursuant to the offer.

World Point Terminals, L.P. Growth Prospects

The Company is a master limited partnership that owns, operates, develops and acquires terminals and other assets, which are related to the storage of light refined products, heavy refined products, and crude oil. The Company has storage terminals located across strategic locations, like the East Coast, Gulf Coast, and Midwest Regions of the United States. The Company recently reported its Q1 FY17 results on May 09, 2017. The Company reported net revenues of $25.2 million, which increased by $0.6 million, or 2%, for the three months ending March 31, 2017, versus the three months ended March 31, 2016.

The Company reported that the base storage fees increased by $1.0 million, or 5%, in Q1 FY17 owing to the addition of new customer contracts at the Blakeley Island, Chickasaw, Chesapeake and North Little Rock terminals. Additionally, the excess storage service fees for Q1 FY17 had surged by $0.1 million, or 46%, primarily due to the increased terminaling activity at the Jacksonville terminal. Ancillary and additive services dipped by $0.6 million, or 13%, for Q1 FY17 owing to decreased volumes throughput at different terminals, resulting in net revenues of $0.6 million for Q1 FY17. The Company additionally declared a quarterly distribution of $0.3 per unit ($1.2 per unit on annualized basis) for the period from January 01, 2017, through March 31, 2017.

Last Close Stock Review

At the closing bell, on Friday, June 02, 2017, World Point Terminals' stock was marginally up by 0.23%, ending the trading session at $17.20. A total volume of 38.82 thousand shares have exchanged hands. The Company's stock price surged 2.56% in the last three months, 2.26% in the past six months, and 14.67% in the previous twelve months. Moreover, the stock gained 3.93% since the start of the year. The stock is trading at a PE ratio of 16.49 and has a dividend yield of 6.98%. The stock currently has a market cap of $598.22 million.

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SOURCE: Pro-Trader Daily

Source: ACCESSWIRE (June 5, 2017 - 8:20 AM EDT)

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