No. of Recommendations: 2
NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) and Brookfield Corporation (NYSE: BN, TSX: BN) today announced steps towards enhancing BAM’s corporate structure and positioning BAM for broader equity index inclusion, particularly those in the U.S.
As part of this effort, BAM has now changed its head office to New York. In addition, BAM and BN have entered into an agreement whereby BAM would own and reflect 100% of the asset management business (the “Arrangement”), and BN’s current 73% interest in the asset management business would be held directly through ownership of approximately 73% of the publicly traded shares of BAM.
The Arrangement will not result in any changes to the operations or strategic plans of BAM or BN and will have no effect on the tax treatment of their respective dividends.
BAM expects to hold a special meeting (the “Meeting”) for shareholders to consider and vote on the Arrangement on December 20, 2024. If approved at the Meeting, the Arrangement is expected to close in early 2025, subject to court approval and other customary closing conditions, including NYSE and TSX listing approvals.
The Arrangement simplifies the corporate structure of the asset management business, making it easier for investors to understand and value the security. It will also enable BAM’s market capitalization to accurately reflect the total value of the asset management business. Today, that would be approximately $85 billion based on the current stock price of the BAM Class A Shares, compared to BAM’s current market capitalization of approximately $23 billion, which reflects only 27% of the asset management business.
Broader index inclusion is expected to drive increased ownership of the Class A Shares by passive institutional investors, who collectively manage trillions of dollars in capital. Further, inclusion in the most widely followed indices is expected to increase BAM’s visibility among a much broader universe of active public investors who benchmark against these indices.
https://bn.brookfield.com/press-releases/brookfiel... 