"This is a unique opportunity to invest in a large-scale, high quality utility business and participate over time in
Investment Highlights
-- Well located, energy infrastructure assets. NTS owns the infrastructure
supplying natural gas to Brazil's core industrialized and most populated
states, including Rio de Janeiro , Sao Paulo and Minas Gerais .
-- Stable and growing cash flows with no volume risk. The Company operates
a utility-like business under a stable regulatory framework with volumes
100% contracted under long-term "ship-or-pay" gas transportation
agreements ("GTAs") with full inflation indexation.
-- Unique opportunity to invest and participate in Brazil's growing gas
industry. Brazil's gas market is expected to grow substantially by 2030
with the development of associated natural gas supplies coming from the
Pre-Salt offshore oil fields in Southern Brazil .
Asset Overview
NTS is a 2,048 km pipeline system that provides the transportation network for natural gas in
The GTAs account for 100% of the pipeline capacity and provide the country's main gas supplier, Petrobras, access to end users including local distribution companies, gas fired power generation plants and industrial users. The weighted average remaining life of the GTAs is 14 years. In addition, upon expiry of the GTAs, NTS is entitled to continue to earn a return on and return of capital remaining in the business, plus recovery of all operating and maintenance costs until the end of the concessions in 2039 through 2041.
Funding
Under the terms of the transaction, the purchase price is payable in two tranches an up-front payment of
Brookfield Infrastructure will fund its proportionate share of the up-front payment (approximately
As part of the transaction, Brookfield Asset Management has agreed to participate initially for an approximate 30% interest in the Consortium. Brookfield Asset Management expects to syndicate its holdings prior to closing of the transaction and Brookfield Infrastructure has priority rights to take up a portion of this syndication.
Operations
Initially, the pipelines will be operated by a subsidiary of Petrobras under a multi-year operations and maintenance contract. Over time, Brookfield Infrastructure will have the flexibility to transition NTS to a fully stand-alone operating business and internalize all management and operating functions, if desired.
Transaction Process
Closing of the transaction remains subject to a number of conditions. These conditions include (among others) the finalization, to the satisfaction of the relevant Petrobras and Consortium parties, of terms and conditions of a number of long-term agreements relating to the ongoing operations of the business. The transaction is also subject to a number of other customary conditions, including regulatory approvals. Closing of the transaction is targeted for December 2016 or as soon as possible thereafter.
Brookfield Infrastructure Partners is a leading global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and communications infrastructure sectors across
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager with
For more information, please visit our website at www.brookfieldinfrastructure.com.
Note: This news release may contain forward-looking information within the meaning of Canadian provincial securities laws and "forward-looking statements" within the meaning of Section 27A of the
The future performance and prospects of Brookfield Infrastructure are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this news release include general economic conditions in the jurisdictions in which we operate and elsewhere which may impact the markets for our products, the ability to achieve growth within Brookfield Infrastructure's businesses and in particular completion of the acquisition referred to in this news release, which cannot be assured, the impact of market conditions on our businesses, the fact that success of Brookfield Infrastructure is dependent on market demand for an infrastructure company, which is unknown, the availability of equity and debt financing for Brookfield Infrastructure, the ability to effectively complete new acquisitions in the competitive infrastructure space (including the ability to complete announced and potential acquisitions that may be subject to conditions precedent), and to integrate acquisitions into existing operations, the future performance of these acquisitions, the market conditions of key commodities, the price, supply or demand for which can have a significant impact upon the financial and operating performance of our business and other risks and factors described in the documents filed by Brookfield Infrastructure with the securities regulators in
Contacts: Media: Suzanne Fleming Senior Vice President, Branding & Communications (212) 417-2421 [email protected] Investors: Melissa Low Vice President, Investor Relations & Communications (416) 956-5239 [email protected]
Source: Brookfield Infrastructure Partners L.P.
| Title | Document |
|---|---|
| Download this Press Release |