Brookfield Asset Management Ltd. (BAM, BAM.TO) and Brookfield Corporation (BN, BN.TO) have unveiled strategic initiatives to enhance BAM's corporate structure, thereby positioning the company for potential increased inclusion in U.S. equity indices.
Key to this effort is BAM's relocation of its head office to New York. Additionally, BAM and BN have formulated an agreement ensuring BAM assumes full ownership and representation of the asset management business. Consequently, BN's existing 73% interest in this business will translate into a direct ownership of approximately 73% of BAM's publicly traded shares.
A special shareholders' meeting is scheduled for December 20, 2024, to deliberate and vote on the proposed Arrangement. Should the proposal receive approval, the transaction is anticipated to conclude in early 2025, pending regulatory approvals from both the NYSE and TSX.
The Arrangement stipulates that BAM will acquire about 73% of the outstanding common shares of Brookfield Asset Management ULC from BN and specific subsidiaries. This company is instrumental in managing Brookfield's premier global alternative asset management operations.
BAM plans to issue Class A Shares to BN in a one-for-one exchange for all Common Shares currently held by BN and its subsidiaries. As part of this Arrangement, BAM’s charter documents will be amended to ensure BN retains control of BAM as long as it maintains a majority of the voting shares.