Brookfield Asset Management in talks to join bid for UAE gas pipelines
Brookfield Asset Management (NYSE: BAM) is apparently vying to be part of a massive energy deal in the Middle East. Bloomberg report, citing “people with knowledge of the subject,” says the sprawling investment firm is in talks to be part of a consortium that will bid for a 49% stake in the Abu gas pipeline business Dhabi National Oil Company (ADNOC).
Other companies included in the talks are the Italian utility Snam gas, the Ontario Teachers’ Pension Plan and the Global Infrastructure Partners investment fund.
Last year, ADNOC, owned by its namesake emirate in the United Arab Emirates, put out a tender for the minority stake. It could be worth around $ 15 billion right now, according to the article’s sources.
Like the other companies mentioned in the Bloomberg article, Brookfield has yet to comment publicly on its participation in the ADNOC tender.
Brookfield is a sprawling business which invests its capital in a wide range of assets, from global infrastructure projects to North American real estate.
Recently, in the wake of the SARS-CoV-2 coronavirus pandemic, the company has sought to reassure investors with an update on its activity. While acknowledging that there are likely slack periods ahead, Brookfield pointed out that it and its four publicly traded affiliates have about $ 12 billion in credit facilities, plus about $ 5 billion in credit facilities. assets that can be easily liquidated, compared to $ 7 billion in debt.
“Most of our businesses are very resilient, so we don’t foresee any major problems,” the company said.
Brookfield stock rose nearly 9% on Monday, outpacing the gain of the S&P 500 and some of its most important actions to the day.
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