Brookfield Infrastructure Partners LP is in “very advanced” discussions to acquire seven assets in North and South America, and Australia, according to Chief Executive Officer Sam Pollock.
The potential acquisitions are in the transport, energy and communications industries, Pollock said in a letter to investors Tuesday.
“We are using the same playbook for acquiring high quality investments on a value basis as we have in the past,” he said. “In addition to these seven, we have a number of less advanced, but equally exciting prospects in our pipeline.”
Brookfield Infrastructure has raised about $1.4 billion since the start of 2015 to fuel acquisitions and currently has about $2.3 billion in cash and cash equivalents, Pollock said.
The Bermuda-based infrastructure arm of Brookfield Asset Management Inc. said Brazil is presenting the best opportunities for investment. Brookfield Infrastructure is aiming to deploy as much as $2 billion in the country over the next six to 18 months, Pollock said.
Asset prices in Brazil have dropped amid projections Latin America’s largest economy will suffer its worst contraction in a quarter century this year as the government struggles to shore up its finances and tame inflation to avert a credit-rating downgrade. Fallout from Petroleo Brasileiro SA’s corporate-corruption scandal has also trapped suppliers of the company, known as Petrobras, in a credit squeeze.
“Despite recent market volatility and economic challenges, Brazil remains a large, high growth market with strong competitive advantages in the production of many global commodities,” Pollack said.
Pollock also confirmed Brookfield is in exclusive discussions with OAS, a large Brazilian construction company, to buy its 24.4 percent stake in a large toll road, airport and urban transport company Invepar. OAS filed for creditor protection in Sao Paulo in March.
It also confirmed on April 30 it intended to make a tender offer for the public minority stake in its Brazilian toll road subsidiary that could see it invest up to a further $200 million to acquire the shares and reduce debt, Pollock said.