Mukesh Ambani, Brookfield to acquire Mukesh Ambani’s loss-making pipeline for Rs 13,000 crore

Mukesh Ambani, Brookfield to acquire Mukesh Ambani’s loss-making pipeline for Rs 13,000 crore, KEY INFRASTRUCTURE

Mukesh Ambani: Brookfield on Thursday announced it is buying the loss-making East-West Pipeline Ltd (EWPL), earlier known as Reliance Gas Transportation Infrastructure Ltd, for an enterprise valuation of Rs 13,000 crore ($2 billion) from Mukesh Ambani, chairman of Reliance Industries. Mukesh Ambani, Brookfield to acquire Mukesh Ambani’s loss-making pipeline for Rs 13,000 crore.

Mukesh Ambani, Brookfield to acquire Mukesh Ambani’s loss-making pipeline for Rs 13,000 crore

This will be the first time a private pipeline is India is being monetized. It's also the first time Reliance, India's largest private sector company. Brookfield is also buying Reliance Jio’s telecom tower assets in a similarly structured transaction that could value the portfolio at $7-8 billion, said sources aware of the developments.

Brookfield has already filed the preliminary placement memorandum for setting up an infrastructure investment trust ( InvIT). Brookfield will be the sponsor or this India Infrastructure Trust and will own 90% of it. The InvIT will acquire 100% equity interest in Pipeline Infrastructure Private Limited (“PIPL”) which currently owns and operates the Pipeline.

Brookfield is also tying up with a clutch of marquee asset management companies, family offices, banks, and insurers to come on board with a 10% stake. ET on February 11th reported that ICICI Prudential Asset Management Company, the family office of the Poonawallas of Serum Institute, Russell Mehta of Rosy Blue, also the father in law of Akash Ambani, Bank of Baroda are likely to join the Canadian investor in India Infrastructure Trust, the vehicle that is being created for the acquisition to take over the 1,400 km common carrier pipeline from Kakinada on the east coast to Bharuch in Gujarat. The law stipulates at least 5 non-promoter sponsors for such InvITs. These investors need to come on board within a fortnight.

The identity of these investors is not yet disclosed.

EWPL has built and operated the critical pipeline to transport natural gas produced by Reliance-BP from the Krishna-Godavari (KG) basin on the east coast and links to users on the west coast.

The Competition Commission of India had approved the transaction in September 2018.

The Rs 13,000 crore will be evenly split between equity and debt. Axis and ICICI Bank are providing the financing. The other investors together are likely to put in Rs 1,000-1,200 crore as equity contribution and will own 10-15% of the asset.

As part of the agreement, RIL has the right to acquire equity shares of PIPL held by the invite at an equity value of Rs. 50 crore. It's the current investment in preference shares valued at Rs. 4,000 crores to continue and will be converted into equity at the end of 20 years.

The refining and oil and gas major will continue to be entitled to transport gas, either by itself or of any customers, free of cost against any outstanding unutilized capacity payments.

At the current approved final tariff of Rs. 71.66/MMBTU, if the average volume of gas transported is 22 MMSCMD, RIL will not be liable to make unutilized capacity payments.

The next review of tariff in April 2020 will also consider upward revision arising from

determination of the lower revised capacity of the pipeline. Considering the new investments in the upstream sector in the KG basin, and the growing LNG imports, ability to swap gas, the average volume expected to be transported through the pipeline is expected to be significantly higher compared to the current levels, Reliance said in a statement.

RIL will be entitled to significant participation in the net earnings of PIPL under the mechanism specified in the pipeline usage agreement. JM and Ambit are the advisors in the transaction


Other than KG Basin output, the pipeline also transports gas from other sources including RLNG (regasified LNG) terminals along the stretch of the pipeline and is connected to pipelines of other operators such as state-run GAIL (India) Ltd and Gujarat State Petronet Ltd for onward delivery nationwide.

But its cash flow is sensitive to the volume of gas available for transportation and the drop in RIL’s gas production from its KG-D6 block over the past few years, has made it bleed. In FY18, the operating revenue of the pipeline was Rs 884 crore and a net loss of Rs 715 crore. The total debt is Rs 13,715 crore.

The pipeline, Sikka Ports & Terminals Ltd (SPTL) and Reliance Utilities and Power Pvt Ltd (RUPPL) are key companies in Ambani’s privately held RIHPL Group and their operations are critical for Reliance Industries as they are closely integrated with its facilities in Jamnagar, Dahej and Hazira in Gujarat, and with its KG-D6 gas fields. The facilities cater exclusively to RIL’s existing facilities as well as its expansion in the petrochemicals and refining business.

In five years since April 2012, RIHPL group has extended support to EWPL in the form of subordinated debt and preference shares of about Rs 4,826 crore and Rs 8,000 crore, respectively, as of March 31.



1st Wedding Anniversary,1,70th Republic Day Live updates,1,About Life,25,Action,1,Airtel plans,3,Amrish Puri,1,Android Q Beta Google Pixe,1,Animated,2,Authorities: 3 killed,1,BackLinks,1,Best Google AMP Blogger Template 2019,1,Best Smartphones Under 10000 Rupees 2019,1,Bhagat Singh,1,Bihar Board Result,1,Biography,62,BJP,2,Blogger Website SEO Tips,13,Bollywood,66,Breaking News,98,Celebrating Today,2,Chocolate Day 2019,1,Christmas Day 2018,3,Christmas Decoration,2,Christmas History,3,Christmas Messages,2,Coachella Valley Music and Arts,1,Comedy,2,Congress,2,Cricket,14,Current Affairs,2,Datta Jayanti,1,Dj Song,1,Dofollow Backlinks,4,Education,5,Elections,8,Entertainment,42,Events,2,Features,1,Festivals,60,Friedlieb Ferdinand Runge,1,Frozen 2 Disney 2019,1,G,1,gameplay,6,General Elections 2019,2,GK & GS,1,Good Morning Images With Shayari,2,Google,3,Google Analytics Tutorial,1,Gov Sites List For Backlinks,1,Government Jobs,3,Guru Ravidass Jayanti 2019,1,Happy Chocolate Day,2,Happy Hug Day,2,Happy Independence Day 2019,7,Happy Kiss Day,3,Happy Makar Sankranti 2019,1,Happy New Year 2019,3,Happy Promise Day,2,Happy Propose Day,2,Happy Republic Day 2019,2,Happy Rose Day,2,Happy Slap Day,1,Happy Teddy Day,2,Happy Valentines Day,4,Health,7,Holi 2019,2,Holi Essay,2,Holi History,1,Holi Video,1,Hollywood,80,Holyday's,8,Honor 20,1,How To Celebrated Holi,1,Huawei Y9,1,Hug Day 2019,1,India Elections 2019,1,India Readies for Republic Day,1,IPL,8,January Current Affairs,2,Jean-Baptiste Poquelin,1,Jessica Biel,2,JIO,7,Jio Broadband,4,Jio DTH,3,JIO PHONE,3,Jobs,4,Jupiter,1,Kedar Jadhav lauds MS Dhoni's guidance,1,Keyword Research,1,Kiss Day 2019,1,Lenovo,1,Lev Landau's 111th Birthday,2,Life Style,7,LifeStory,48,Lok Sabha Election 2019,2,Madhubala,1,Maha Shivratri 2019,1,Makar Sankranti,1,Manikarnika,1,Marcal Paper Mills Inc New Jersey,1,Market,5,Martin Luther King,7,Mindy Kaling,1,Moon,2,Movies Reviews,4,Mukesh Ambani,1,My Life Quotes,5,Narendra Modi,3,Narendra Modi Kashmir India Jammu,1,National Poultry Day,1,Netaji Subhas Chandra Bose,1,New Launch Mobile,30,New Video Songs,1,NIA,1,Nokia,1,Nokia 2.2,1,Nokia 9,1,Nowruz 2019,1,Online Jobs,2,Oppo F11 Pro Price,2,Oppo K1,2,Oppo R17,2,P J Harrigan's Bar & Grill,1,Pakistan vs India,1,Presidents Day 2019,1,PRESIDENTS' DAY 2019,1,Promise Day 2019,1,Propose Day 2019,1,PUBG Guide,1,PUBG Mobile,2,PUBG Update,1,Pulwama attack,1,Realme 3,1,Realme U1,2,Red Magic Gaming Phone,1,Redmi Note 7 Pro,1,Reliance,3,Result,1,Robin Williams Biography Reveals His Chaotic Life,2,Rose Day 2019,1,Sad Poetry,1,Saina Nehwal,1,Salman Khan,1,Samsung Galaxy,1,Samsung Galaxy A90,1,Samsung Galaxy M10,1,Samsung Galaxy M20,1,Samsung Galaxy M40,1,Samsung Galaxy Note 10,1,Science,10,SCO,12,SEO Optimization,12,Shay Mitchell's Instagram Story,1,Shivaji Jayanti in 2019-2020,1,Shivaji Jayanti in 2020-2021,1,Shivaji Jayanti in 2021-2022,1,Shivaji Jayanti in 2022-2023,1,Shivaji Jayanti in 2023-2024,1,Shivaji Jayanti in 2024-2025,1,Shri Tailang Swami Jayanti,1,Slap Day 2019,1,Solar Eclipse,1,Sonia Dhawan’s,1,Sport,17,Statements About Living a Beautiful Life,1,Steve Irwin's 57th Birthday,1,Technology,104,Teddy Day 2019,1,Thackeray,1,The Queen Of Jhansi,1,Today News,2,Tollywood,1,Tomás Carrasquilla,1,Top Google Searches United States,1,Total Dhamaal,1,Trump's plan,4,United Kingdom,1,Valentine Week List 2019,3,Valentine's Day 14th February 2019,2,Valentines Day 2019,1,Varul News,41,Venus,1,Vivo,1,Vivo Apex 2019,1,Vivo V15 Pro,1,Vivo Z1 Pro,1,Vodafone,1,Website Script,1,WhatsApp Status,1,WhatsApp Status Updates,1,When is Holi,1,Windows or Linux,1,Winter Solstice 2018,1,Wolf Moon,2,Women's World Cup 2019,6,World Cup,2,World Water Day,1,Worlds News,147,Xiaomi Mi A3,1,Xiaomi Mi Mix 2s Price,1,XIAOMI POCO F1,2,Xiaomi Poco F2,1,Xiaomi Redmi note 7 pro,1,YotaPhone 3,1,Youtube Tricks,3,जीवन सौरभ,1,सैड शायरी,2,हैप्पी गणतंत्र दिवस 2019,1,
Life Story: Blogging Tip's, Latest, Trailer, Movies, Review, Breaking: Mukesh Ambani, Brookfield to acquire Mukesh Ambani’s loss-making pipeline for Rs 13,000 crore
Mukesh Ambani, Brookfield to acquire Mukesh Ambani’s loss-making pipeline for Rs 13,000 crore
Mukesh Ambani, Brookfield to acquire Mukesh Ambani’s loss-making pipeline for Rs 13,000 crore, KEY INFRASTRUCTURE
Life Story: Blogging Tip's, Latest, Trailer, Movies, Review, Breaking
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy