Brookfield Business Partners to Simplify Structure, Convert to Canadian Corporation
By Robb M. Stewart
Brookfield Asset Management's flagship listed private-equity vehicle Brookfield Business Partners plans to simplify its structure and become a traded Canadian corporation in an effort to broaden its investor base and make it easier to trade the shares.
The proposed move would convert Brookfield Business Partners LP, a limited partnership, and Brookfield Business Corp., a corporation, into one corporation.
Brookfield Business Partners noted shares of Brookfield Business Partners Corp. currently trade at a roughly 25% premium to those of the limited partnership.
The company said it expected the reorganization to appeal to global investors who prefer corporate structures, and would mean improved trading liquidity through a single listed security. Both the current corporation and partnership are listed in Toronto and on the New York Stock Exchange.
The move also is expected to mean increased demand from expected index inclusion, and simplified financial reporting and the elimination of partnership tax reporting forms.
The change comes after Brookfield Asset Management last year relocated its headquarters to New York from Toronto and earlier this year took full control of parent Brookfield's asset management business. That left its parent directly owning a 73% interest in Brookfield Asset Management where it previously had an equivalent stake in the asset management operations.
All limited partnership units, Brookfield Business Corp. class A exchangeable shares and redemption-exchange units in Brookfield Business Partners LP held by Brookfield will be exchanged for new class A shares of BBU Inc. on a one-for-one basis. The class A shares of BBU Inc. are expected to be listed on both the NYSE and Toronto Stock Exchange and have a market capitalization that reflects the combined capitalization of the two listed arms.
BBU Inc. will pay an annual dividend of 25 cents a share, consistent with the current distribution to existing limited partnership unitholders and the current dividend to existing corporate shareholders.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
September 25, 2025 07:30 ET (11:30 GMT)
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