PARIS, Aug 17 (Reuters) - Canada's Brookfield Asset Management Inc 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 times. Odebrecht S.A. will cash out 3.4 billion real, he added.
Odebrecht Group will retain the right to develop its 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.
($1 = 3.2025 Brazilian reais)
Reporting by Geert De Clercq; Editing by Adrian Croft