Brookfield closes acquisition of Nova Transportadora do Sudeste

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By CPE News

Toronto (pcJ News Briefs) – Brookfield Infrastructure (NYSE: BIP; TSX:BIP.UN) has completed previously announced acquisition of a 90% ownership interest in Nova Transportadora do Sudeste S.A. (NTS) from Petroleo Brasileiro S.A. through a Brookfield-led consortium, for total consideration of approximately US $5.2 billion.

The purchase price is payable in two tranches – an upfront payment of US $4.2 billion due on closing and the balance payable on the fifth anniversary of the closing.

“Closing this transaction was one of our top priorities for 2017,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. “We are deploying approximately $1.3 billion at closing to significantly expand our utilities business in a sector and geography that we know well, where we will earn strong risk-adjusted returns.”

Over the past six months, Brookfield Infrastructure has undertaken various capital raising initiatives to solidify a funding plan for its pipeline of strategic initiatives. Consequently, this investment in NTS will be funded from existing corporate liquidity which totalled approximately $3 billion at March 31, 2017.

photo credit: Petroleo