The G&M reports:
Asset manager Brookfield Corp. is working on converting its massive renewable power and infrastructure businesses from limited partnerships into traditional corporate structures, a move meant to gain more passive investors.
This week, Brookfield Renewable Partners LP, which has a $13.7-billion market capitalization, and Brookfield Infrastructure Partners LP, valued at $22.5-billion, announced their boards “have recently begun exploring whether a single combined corporate structure would be the best path forward.”
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Brookfield is following a path blazed by several large North American infrastructure and power companies that acquired assets previously owned through limited partnerships to simplify their corporate structures and boost their stock price.Companies that took these steps include pipeline operators TC Energy Corp., Enbridge Inc. and Kinder Morgan Inc.
On Friday, the spread between the price of Brookfield Renewable’s limited partnership units and corporate shares narrowed to 9.5 per cent after the company announced the board is considering creating a single entity. Mr. Hope said this is “well down from levels seen at the beginning of the week and year.”
A similar gap existed between the price of units in Brookfield Business Partners LP, the asset manager’s private equity arm, and shares in Brookfield Business Corp., which was created in 2022.
Brookfield Infrastructure Partners L.P. 26Q1 Press Release:
BIP and BIPC Structure
At the direction of the Board, we have recently begun exploring whether a single combined corporate structure would be the best path forward. The goal is to determine if, on a tax-free basis, we can create a single corporate security that would enhance liquidity, increase index inclusion, and create value for our investors.
Brookfield Renewable Partners L.P.’s 26Q1 Press Release:
BEP and BEPC Structure
- We have recently begun exploring whether a single combined corporate structure would be the best path forward. The goal is to determine if, on a tax-free basis, we can create a single corporate security that would enhance liquidity, increase index inclusion and create value for our investors.
Affected issues are: BIP.PR.E, BIP.PR.F, BEP.PR.M and BEP.PR.R.