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NEW YORK - Brookfield Business Partners, with a current market capitalization of $2.52 billion, announced plans to simplify its corporate structure by converting its current dual-entity structure into a single publicly traded Canadian corporation, according to a press release statement.
The reorganization will combine Brookfield Business Partners LP (NYSE:BBU; TSX:BBU.UN) and Brookfield Business Corporation (NYSE, TSX:BBUC) into one entity called BBU Inc. The company noted that BBUC shares currently trade at approximately 25% premium to BBU limited partnership units. According to InvestingPro data, BBUC shares have delivered an impressive 49.12% return year-to-date and are currently trading near their 52-week high of $37.01.
Under the plan, all 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. The new entity’s shares are expected to be listed on both the NYSE and TSX.
"The conversion into a single corporate entity is designed to broaden our investor base, increase index demand and make it easier to invest in our shares," said Anuj Ranjan, CEO of Brookfield Business Partners.
BBU Inc. will maintain an annual dividend of $0.25 per share (representing a 0.7% yield), consistent with current distributions to existing unitholders and shareholders. Brookfield Asset Management’s ownership stake will remain unchanged following the transaction. InvestingPro analysis reveals several additional insights about the company’s financial health and valuation metrics - subscribers can access 10 more exclusive ProTips and detailed financial metrics.
The reorganization requires approval from BBU unitholders and BBUC shareholders, along with regulatory and court approvals. Independent committees comprising independent directors from both BBU and BBUC have been formed to review the transaction.
The company expects to complete the reorganization during the first quarter of 2026. Brookfield Business Partners, which currently generates $895 million in EBITDA and maintains a current ratio of 0.56, is the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group, which manages over $1 trillion in assets.
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