The latest move by Brookfield to buy the loss-making East West Pipeline Ltd (EWPL) for Rs 13,000 crore from Reliance Industries Chairman Mukesh Ambani will help address investor concerns over related party transactions, Morgan Stanley has said.
“The pipeline sale by promoters should reduce investor concerns over related-party transactions. While RIL’s cashflows will be negatively impacted near term, the pipeline usage agreement provides reasonable flexibility for RIL to manage its gas requirements and also upside to India’s gas story,” the investment banking and financial services firm said in a note.
RIL had on Thursday announced the pipeline, earlier known as Reliance Gas Transportation Infrastructure Ltd, Read More
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