Macquarie Group (MCQEF) plans to sell Centerline Logistics, a marine petroleum transportation service unit. Citing people with knowledge of the matter, Bloomberg reports the company could fetch as much as $600 million from the sale, including debt. MCQEF shares were flat, to close at $140 on December 2.
Macquarie Group is a holding company specializing in providing banking, financial advisory, investment, and fund management services. The company provides investment solutions to clients in addition to personal banking, wealth management, and business banking services.
Centerline Logistics Proposed Sale
The Australian firm has already engaged the services of Evercore Partners (EVR) as it looks to trigger interest from various suitors, including pension funds and infrastructure-focused firms. The potential sale comes on Centerline establishing its operations in New York Harbor and along the U.S. West Coast and Gulf Coast.
Centerline Logistics has carved a niche for itself in offering transportation and storing services for petroleum products. It is also engaged in the refueling and escorting of ships. Some of its biggest customers include Exxon Mobil (XOM) and BP (BP).
Macquarie Group’s move to sell Centerline Logistics comes at a time when global supply issues are a prominent problem.
Stock Rating
Last month, Jefferies analyst Brian Johnson reiterated a Buy rating on Macquarie Group and lowered the price target to $165.85, implying 18.47% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 4 Buys and 2 Holds. The average Macquarie Group price target of $146.35 implies 4.54% upside potential to current levels.
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