The Globe and Mail reports in its Saturday edition that Brookfield Asset Management
and its partners have agreed to buy 90 per cent
of a Brazilian natural gas
distribution network owned by
Petroleo Brasileiro SA for $5.2-billion (all figures U.S.). A Bloomberg dispatch to The Globe says that the buyer group is
being led by Brookfield
Infrastructure Partners LP, and
includes CIC Capital Corp. and
GIC Private Ltd. Brookfield Infrastructure's
investment will be at least
about 20 per cent the transaction,
or around $825-million, payable
on closing. The remainder will
be owned by institutional partners.
Sam Pollock, Brookfield Infrastructure's
chief executive officer, said in a statement that the partners are investing in a "large-scale, high
quality utility business and participate
over time in Brazil's growing gas industry." Petrobras is
selling the stake in Nova Transportadora
do Sudeste in southern Brazil after it became the
centre of the country's biggest
corruption scandal and as it
struggles to recover from billions
invested in unprofitable refineries.
Petrobras set a $15.1-billion asset sale target for
the two years through 2016 to reduce the heftiest debt load in
the industry.
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