Reliance Industries shares gained nearly a percent on Friday morning. The surge was on the back of the announcement that Brookfield will buy the group’s loss-making East West Pipeline (EWPL) for Rs 13,000 crore.
EWPL was earlier called Reliance Gas Transportation Infrastructure Ltd.
RIL was quoting at Rs 1,347.50, up Rs 6.30, or 0.47 percent, on the BSE, at 09:22 hours IST.
The Mukesh Ambani-owned company said Brookfield has filed the preliminary placement memorandum, according to which India Infrastructure Trust (an InvIT set up by Brookfield as sponsor and 90 percent investor) will invest Rs 13,000 crore to acquire the EWPL.
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The InvIT will acquire 100% equity interest in Pipeline Infrastructure Private Limited (“PIPL”) which currently owns and operates the Pipeline, said a statement by RIL.
RIL’s current investment in preference shares valued at Rs 4,000 crore will continue and will be converted into equity at the end of 20 years, it said.
“Further at the end of 20 years, RIL will have the right to acquire equity shares of PIPL held by the InvIT at an equity value of Rs 50 crore”.
In the last one month, the stock has gained 10 percent to hit a life-time high of Rs 1,361.45 on March 14, 2019, while in last one year period, it has surged 45 percent.
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First Published on Mar 15, 2019 10:32 am