Brookfield looks to simplify corporate structure for renewable power, infrastructure businesses
Brookfield Corp. is exploring a move to convert its renewable power and infrastructure limited partnerships into a single corporate structure to attract more passive investors. The goal is to enhance liquidity, increase index inclusion, and create value by merging Brookfield Renewable Partners and Brookfield Infrastructure Partners. This follows a previous successful merger of its private equity entities and aligns with trends among North American energy firms simplifying structures.
- ▪Brookfield Renewable Partners and Brookfield Infrastructure Partners are evaluating a tax-free conversion into a single corporate structure.
- ▪The two corporations, BEPC and BIPC, currently trade at a premium compared to their partnership units due to greater accessibility for passive investors.
- ▪Brookfield completed a similar merger between its private equity partnership and corporation in March 2024 after receiving 99% investor approval.
- ▪The announcement has already narrowed the price spread between partnership units and corporate shares to 9.5%.
- ▪Other North American energy companies like TC Energy, Enbridge, and Kinder Morgan have previously simplified their structures to boost stock performance.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountAsset manager Brookfield Corp. BN-T 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 BEP-UN-T, which has a $13.7-billion market capitalization, and Brookfield Infrastructure Partners LP BIP-UN-T, valued at $22.5-billion, announced their boards “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…
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