Brookfield Asset Management, Brookfield Corp. Aim To Enhance Structure For U.S. Index Inclusion

(RTTNews) - Brookfield Asset Management Ltd. (BAM, BAM.TO) and Brookfield Corporation (BN, BN.TO) announced initiatives aimed at improving BAM's corporate structure, positioning the company for increased inclusion in U.S. equity indices.

As part of the effort, BAM has now changed its head office to New York. In addition, BAM and BN have entered into an agreement whereby BAM would own and reflect 100% of the asset management business , and BN's current 73% interest in the asset management business would be held directly through ownership of about 73% of the publicly traded shares of BAM.

BAM expects to hold a special meeting for shareholders to consider and vote on the Arrangement on December 20, 2024. If approved at the Meeting, the Arrangement is expected to close in early 2025, including NYSE and TSX listing approvals.

Under the terms of the Arrangement, BAM will acquire approximately 73% of the outstanding common shares of Brookfield Asset Management ULC from BN and certain of its subsidiaries as part of the Arrangement. The Asset Management Company owns and operates Brookfield's leading global alternative asset management business.

BAM will issue Class A Shares to BN in exchange for all of the Common Shares currently owned by BN and its subsidiaries on a one-for-one basis. As part of the Arrangement, BAM's articles will also be amended to ensure that BN controls BAM for as long as it holds a majority of its voting shares.