Mumbai: Canadian asset manager Brookfield will buy the loss-making East West Pipeline from Reliance Industries (RIL) for an enterprise value of Rs 13,000 crore, marking its first purchase in the energy sector.
The 1,400-km pipeline from Kakinada in Andhra Pradesh to Bharuch in Gujarat transports natural gas discovered in a Krishna Godavari (KG) basin block operated by RIL.
Brookfield has routed the acquisition through India Infrastructure Trust, an InvIT registered under Sebi rules.
In a statement, RIL said that its investment in East West Pipeline in the form of preference shares worth Rs 4,000 crore will continue and will be converted into equity at the end of 20 years.
