Reliance Industries updates on susbsidiary

Reliance Holding USA to sell 49.9% interest in EFS Midstream LLC for $1073 million

Reliance Industries announced that its subsidiary, Reliance Holding USA, Inc. has signed definitive agreements for the sale of its entire holdings of 49.9% interest in EFS Midstream LLC (EFS) to an affiliate of Enterprise Products Partners L.P. (Enterprise) for a total consideration of approximately $1073 million.

Under the terms of the agreement, Enterprise will pay Reliance approximately $574 million in cash at closing and the final payment of $499 million in cash on or before the first anniversary of the closing date.

EFS provides gathering, treating and compression services and condensate stabilisation operations in the Eagle Ford Shale for the Reliance-Pioneer Upstream Joint Development and to third parties.

EFS is jointly owned by an affiliate of Reliance and an affiliate of Pioneer Natural Resources Company (Pioneer), with their respectively ownership interest being 49.9% and 50.1%.

Reliance's agreement to sell its interest in EFS is part of a joint transaction, wherein both Reliance and Pioneer have agreed to sell their entire stakeholding in EFS, for an aggregate consideration of $2150 million.

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