Brookfield Asset Management’s (NYSE:BAM) board approved on Friday a transaction to distribute a 25% stake in its asset management business, Brookfield Asset Management Ltd., to existing BAM shareholders.
The transaction essentially splits the company into two publicly traded companies — the corporation, which will be renamed Brookfield Corporation, and the manager, allowing shareholders to hold a pure-play global alternative asset management business through the manager. Brookfield Corporation will continue focusing on deploying capital across its operating businesses, growing cash flow, and compounding that capital over the long term, it said.
A special meeting of shareholders has been called for Nov. 9, 2022. Under the transaction each holder of Brookfield Corporation class A shares will receive one manager class A share for every four Class shares held.
Each holder of series 8 or 9 class A preference shares will get a fraction of a manager class A share and a new Brookfield Corporation class A preference share for each series 8 or 9 preference share held.
Class A shares of the corporation are expected to trade on the NYSE and the Toronto Stock Exchange under a new ticker symbol, “BN.” The manager’s class A limited voting shares are expected to trade on the NYSE and TSX under the “BAM” symbol.
In May, Brookfield (BAM) announced the plan to spin off a 25% stake in its asset management unit to shareholders