Brookfield Asset Management said it will separate and list 25% of the stake in its asset management unit, months after the Toronto-based company said it was considering the move to open up growth options.
The company will initially hold a 75% stake in the new entity, with the rest distributed to its current shareholders by the year end, Brookfield said.
Both the parent company and the separated unit will trade on the New York Stock Exchange and the Toronto Stock Exchange, the company said.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
In February, Brookfield Asset Management Chief Executive Officer Bruce Flatt wrote in a letter to shareholders the company was “asset-heavy” compared to most of its peers, and that dimmed its appeal to some.
The split could also potentially attract interest from investors who do not want exposure to Brookfield’s other units, such as the reinsurance business launched last year, Flatt wrote at the time.
Last year, Wells Fargo & Co also streamlined operations by selling its asset management arm to private equity firms GTCR LLC and Reverence Capital Partners for $2.1 billion.
Source: Reuters
Can’t stop reading? Read more
Blackstone set to win Warehouse REIT takeover after Tritax concedes
Blackstone set to win Warehouse REIT takeover after Tritax concedes Blackstone is poised to secure...
Record realisations push Warburg Pincus toward $10bn exit milestone
Record realisations push Warburg Pincus toward $10bn exit milestone Warburg Pincus has returned...
HPS and Apollo step in with $2.2bn buyout debt deal for ABC Technologies acquisition
HPS and Apollo step in with $2.2bn buyout debt deal for ABC Technologies acquisition HPS...