UPDATE 1-Canada's Brookfield to buy Odebrecht Ambiental - source
* Deal done at equity value of 5.3 billion real
* Odebrecht also talked with Veolia, Suez, Acciona
* Brazil corruption scandal ends IPO, global expansion (Adds details on other potential bidders)
By Geert De Clercq
PARIS, Aug 17 (Reuters) - Canada's Brookfield Asset Management has signed a preliminary contract to buy Brazilian engineering conglomerate Grupo Odebrecht's 70 percent stake in water and sewage group Odebrecht Ambiental, an industry source told Reuters on Wednesday.
The source said the deal was done at an equity value of 5.3 billion real ($1.65 billion), which implies an earnings before interest, tax, depreciation and amortisation (EBITDA) multiple of 8.5. Odebrecht S.A. will cash out 3.4 billion real, he added.
Odebrecht Group will retain the right to develop water concession projects outside Brasil and Brookfield will re-brand Odebrecht Ambiental, which was named Foz until 2012.
The deal is expected to be completed by the end of the year.
Odebrecht, Latin America's largest engineering group, owns 70 percent of Odebrecht Ambiental, with Brazilian worker compensation and retirement fund FGTS owning the remaining 30 percent. It was not immediately clear whether FGTS would also sell its stake to Brookfield. Continuación...