Brookfield Business Partners announced plans to simplify its corporate structure by converting Brookfield Business Partners L.P. and Brookfield Business Corporation (BBUC) into a single publicly traded Canadian corporation, BBU Inc. This reorganization aims to streamline the investment vehicle for shareholders.
The conversion is designed to broaden the investor base, increase index demand, and make it easier to invest in the company's shares. Management anticipates that this simplification will drive long-term value, specifically by eliminating the approximate 25% valuation gap that has historically existed between BBUC shares and BBU limited partnership units.
All existing BBU limited partnership units, BBUC class A exchangeable shares, and redemption-exchange units held by Brookfield will be exchanged for new class A shares of BBU Inc. on a one-for-one basis. BBU Inc. is expected to maintain an annual dividend of $0.25 per share, consistent with current distributions, with the transaction anticipated to be completed during the first quarter of 2026, subject to necessary approvals.
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