Reliance Holding USA, Inc., a subsidiary of Reliance Industries (RIL), has signed definitive agreements for the sale of its entire holding of 49.9 per cent in EFS Midstream LLC (EFS) to an affiliate of Enterprise Products Partners L.P. for a total consideration of $1,073 million.
“Under the terms of the definitive agreements, Enterprise will pay Reliance approximately $574 million in cash at closing and make the final payment of $499 million in cash on or before the first anniversary of the closing date,” RIL said in a statement. The proposed transaction is subject to regulatory approvals and some other formalities.
Reliance said its agreement to sell its interest in EFS is part of a joint transaction, wherein both Reliance and Pioneer have agreed to sell their entire respective holdings in EFS, for an aggregate consideration of $2,150 million. Commenting on the transaction, Walter Van de Vijver, President & CEO of Reliance Holding USA, Inc., said “EFS has succeeded in its objective of building the gathering and midstream infrastructure in a timely manner to support ramp-up of the Reliance-Pioneer Eagle Ford Upstream Joint Development operations EFS has now transitioned from a ‘development’ mode to ‘stable operations’ mode, generating free cash flows since 2013.
