Brookfield Renewable announces unit split and creation of an exchange corporation
On November 22, 2019, Brookfield Renewable Partners L.P. ("Brookfield Renewable") announced its intention to create a Canadian corporation in order to provide investors with greater flexibility in how they invest in Brookfield Renewable's globally diversified, multi-technology renewable power portfolio. This entity will be publicly listed on the same exchanges as the current partnership, giving investors the optional to invest in Brookfield Renewable through either a partnership or Canadian corporation and could therefore lead to increased demand and enhanced liquidity.
Brookfield Renewable intends to distribute to existing unitholders, on a tax-free basis to the majority of unitholders, class A shares of the new corporation, Brookfield Renewable Corporation ("BEPC"). From an economic and accounting perspective, the transaction will be analogous to a unit split as it will not result in any underlying change to aggregate cash flows or net asset value except for the adjustment for the number of units/shares outstanding.
The class A shares will be structured with the intention of providing an economic return equivalent to Brookfield Renewable units, including identical distributions, and will be exchangeable, at the shareholder's option, for one Brookfield Renewable unit. Current unitholders are expected to receive one BEPC class A share for every four Brookfield Renewable units held (i.e. 0.25 BEPC class A shares for each unit held of Brookfield Renewable) in the form of a special distribution.
Brookfield Renewable operates one of the world's largest publicly traded, pure-play renewable power platforms with a portfolio consisting of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia. Brookfield Renewable is listed on the New York and Toronto stock exchanges.
Further information can be found on Globe Newswire's website.