Canadian asset management firm Brookfield plans to buy Indian natural gas pipeline East West, a subsidiary of utility services company Reliance, for an enterprise valuation of 14,000 crore rupees ($2 billion).
Brookfield has also filed an application with the Securities and Exchange Board of India for registering the infrastructure investment trust, approval for which is expected this month, following which a formal joint announcement will be made.
The $2 billion will be evenly split between equity and debt and Brookfield is currently in negotiations with Indian lenders such as ICICI Bank for financing.
As part of the contract with Brookfield, Reliance is negotiating a clause that would allow buying back the asset after 20 to 25 years. India-based investment banking firm JM is an advisor to the transaction.